Thieves have allegedly infiltrated Coinbase, making off with user data and threatening to extort $20 million.
Feds Against Swindlers: Coinbase Offers $20 Mil Bounty for Info
It looks like hackers have struck again, this time targeting Coinbase - the US's biggest crypto Exchange. On Thursday, Coinbase announced that some of their customers' personal info was swiped and the crooks demanded a $20 million ransom to keep it quiet.
But not ones to back down, Coinbase put up a fight. Instead of caving, they imposed a $20 million bounty for any info leading to the catch of these conniving crooks.
In a filing with the Securities and Exchange Commission on Wednesday night, Coinbase revealed that they received an extortion email on Sunday. The email came from scoundrels who, with the help of overseas contractors and support staff, had nabbed users' names, addresses, contacts, government IDs, transaction history, and the last four digits of their Social Security numbers.
As it turns out, crypto exchanges are prime targets for hackers. Bitcoin and co. operate beyond traditional banks and can be tough to retrieve if snatched. Although Coinbase had managed to skirt major cyber scandals until now, it seems these evil-doers finally scored a hit.
Coinbase hasn't given a clear picture of just how much data was nabbed, but in a video uploaded to X, their CEO Brian Armstrong mentioned that it was less than 1% of their monthly active users.
It looks like some users fell for the scammers' tricks, with these lowlifes posing as customer support to swipe funds. Armstrong stated that any victims would be compensated.
Exactly how much cash the crooks walked away with remains unclear, but the SEC filing mentions that the estimated loss from remediation and reimbursements could hit between $180 million and $400 million.
On Thursday morning, an email went out to affected customers from Coinbase, warning them never to share login info or transfer assets at the behest of the company. They also expressed their regret for any stress and hassle caused by this unfortunate incident.
In his X video, Armstrong made it clear that Coinbase wouldn't rest until these cyber-scoundrels were caught and brought to justice. Watch out, crooks - the Man is hunting you!
- Coinbase, a major crypto asset exchange, is offering a $20 million bounty for information leading to the apprehension of hackers who stole customer data and demanded a ransom.
- Cybersecurity has become a significant concern for the crypto industry, as it operates outside traditional banking systems, making funds more challenging to recover if hacked.
- In the general-news, Coinbase revealed in a SEC filing that hackers stole personal data, including names, addresses, government IDs, and transaction history, from some of its customers.
- The crime-and-justice sector is closely watching the incident involving Coinbase, as it could set a precedent for handling cybersecurity threats in the crypto banking sector.
