Coinbase has announced a $6.2 million allocation for CEO Brian Armstrong's security, signaling increasing threats in the cryptocurrency sector.
Security Expenditure
According to Bloomberg, the $6.2 million spent by Coinbase on CEO Brian Armstrong's protection surpasses the combined security expenditures for CEOs of companies like JPMorgan. This disclosure highlights the growing threats within the cryptocurrency sector.
Response to Threats
Coinbase recently faced a significant data breach; cybercriminals demanded a $20 million ransom after bribing contractors. In response, Coinbase refused to pay and instead offered a reward fund for information leading to convictions, reflecting the seriousness of the incident.
Enhanced Security Measures
The rising prominence of cryptocurrency corresponds with new threats. Security enhancements are underway at Coinbase, including operations relocation and increased investment in insider-threat detection. These strategies aim to safeguard against future breaches.
The $6.2 million allocated for security reflects the need for proactive measures in light of rising threats related to cybercrime and other risks in the cryptocurrency industry.
