The US Justice Department has launched an investigation into a recent hack of Coinbase, the country's largest cryptocurrency exchange, which resulted in the theft of customer data and a ransom request.
Circumstances of the Hack
According to a Bloomberg report, prosecutors in the Justice Department's criminal division are looking into how the breach occurred, which became public after Coinbase filed additional details with regulators. The company stated that hackers bribed employees and contractors in India to access customer data from within its systems.
"We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement's pursuit of criminal charges against these bad actors," Coinbase chief legal officer Paul Grewal said.
Targets of the Hackers
On Thursday, the company reported that hackers pressured customer service staff, stole data, and demanded a ransom of $20 million. Coinbase received the anonymous demand via email on May 11.
In a recent filing, the firm noted that in the months leading up to that message, it had spotted several overseas support agents pulling information from its internal network. Those workers, based outside the United States, have since been dismissed.
Consequences for Coinbase
The company warned that the fallout from the incident could cost it as much as $400 million to remediate. Investigators noted that the thieves employed a social engineering attack, relying on tricking individuals rather than breaking through computer code.
The investigation is ongoing and may take several months. This incident highlights how the increasing profile of Coinbase has attracted the attention of cybercriminals.
