Coinbase Rejects $20M Ransom, Pledges Same Bounty After Insider Leak Hits 1% of Users
By: crypto news|2025/05/15 23:17:05
0
Share
$20 million ransom demand flipped into a matching bounty when Coinbase disclosed this week that bribed overseas support staff leaked partial data on less than 1% of its users, reigniting fears of insider threats across crypto exchanges.Cyber criminals bribed and recruited rogue overseas support agents to pull personal data on https://t.co/SidVn59JCV— Coinbase (@coinbase) May 15, 2025The crypto exchange says a group of rogue agents were bribed by cybercriminals to copy sensitive data, which was then used in a social engineering campaign to impersonate Coinbase and defraud users.Although no customer funds, passwords, or private keys were accessed, the attackers obtained partial personal information, including names, contact details, masked Social Security and bank account numbers, and in some cases, images of government-issued IDs. Coinbase emphasized that Coinbase Prime users were not impacted and that no direct access to hot or cold wallets was ever at risk.“We’re committed to full transparency,” Coinbase said in a public statement, “and instead of giving in to the $20 million ransom demand, we’re establishing a $20 million reward fund to bring the criminals to justice.”The Anatomy of the AttackAccording to Coinbase, the breach occurred when criminals targeted overseas support agents and offered them financial incentives to participate in the scheme. A small number of insiders accepted the bribes and abused their privileged access to copy data stored in customer support tools.The attackers then attempted to extort the company, threatening to release the stolen information unless Coinbase paid a $20 million ransom. The exchange declined the demand, opting instead to notify affected users and bolster its internal and external security infrastructure.The stolen data included transaction histories, account balances, and some internal documentation accessible to support agents. However, the attackers did not obtain passwords, two-factor authentication codes, private keys, or access to any wallets, thus preventing direct theft of funds.Coinbase’s Response and Customer SupportIn response to the breach, Coinbase has pledged to reimburse retail customers who were tricked into sending funds to scammers through social engineering tactics. These reimbursements will be made after a thorough review process. Affected accounts are now subject to increased withdrawal security protocols, including additional ID checks and scam-awareness prompts.Coinbase said it is also taking steps to reinforce its global support operations. For example, a new customer support hub is being established in the United States, and enhanced insider-threat detection systems are being rolled out across all service locations.The company has intensified internal simulations to stress-test its security infrastructure and isolate potential vulnerabilities.All impacted users have received direct communication, and Coinbase is working closely with law enforcement agencies both in the U.S. and internationally. The rogue employees involved were immediately terminated and referred for criminal prosecution.A Call for AccountabilityRather than succumbing to extortion, Coinbase said it is offering a $20 million reward for information that leads to the arrest and conviction of those responsible for the breach. Anyone with credible information is encouraged to contact the company at security@coinbase.com. In parallel, Coinbase and its partners have tagged crypto wallet addresses associated with the attackers to aid in asset recovery.Coinbase is also reminding users to stay vigilant against scams and impersonators. Customers are urged to never share passwords or 2FA codes, and to lock their accounts immediately if something seems suspicious.“Trust is foundational to crypto adoption,” Coinbase said in its closing statement. “We’re sorry for the concern this incident caused and remain committed to transparency and protecting our users at every step.”Huge Blow for the CompanyCommenting on the cyber attack on Coinbase, Nick Jones, founder and CEO at Zumo, said: “Unfortunately, as our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks and harnessing new AI tools and techniques to bypass fraud prevention measures.”“This is understandably a huge blow for a company that has had a pivotal few weeks, announcing the acquisition of Deribit in the digital market’s largest deal to date, and then joining the S&P 500.”“This attack underlines the critical importance of robust cybersecurity measures. The European Union (EU) introduced its Digital Operational Resilience Act (DORA) earlier this year with an emphasis on financial institutions ensuring the resilience of their supply chain, promoting better data hygiene, and sharing usable insights on attacks they have experienced to strengthen the industry’s perimeter. This seems particularly pertinent as it emerges that the hack occurred when attackers bribed overseas support staff,” Jones added.The post Coinbase Rejects $20M Ransom, Pledges Same Bounty After Insider Leak Hits 1% of Users appeared first on Cryptonews.
You may also like

What is the connection between Huang Zheng of Pinduoduo and blockchain?
From Pinduoduo's "reverse insurance" to blockchain's smart contracts, this article explains how Huang Zheng's underlying logic uses "certainty" rules to reshape the flow of wealth for ordinary people.

The other side of Musk's trillion-dollar fortune: 85% cannot be sold
SpaceX's IPO is a math problem, and the answer is not on the pricing day, but in the first quarter after the lock-up period ends.

The U.S. government prohibits foreigners from using Fable 5, Anthropic issues a rebuttal
The sudden removal of the two models has caused widespread shock in the tech industry and the AI community.

Citibank releases "2030 Asset Tokenization Market Outlook": 6 major trends may create a $8.2 trillion market
The tokenization of financial assets is moving from pilot projects to large-scale implementation, but this is a gradual evolution rather than a fierce revolution.

The trillion-dollar valuation test: Are the three major super IPOs a celebration for tech stocks or a nightmare for the crypto market?
Tech giants like SpaceX and OpenAI have sparked a $35 trillion super IPO wave. The "suction effect" is not enough to crash the stock and crypto markets, but the test of high valuations is just beginning.

Morning Report | Digital Asset completes $355 million financing led by a16z Crypto; Meta completes operational separation from Manus
Overview of Important Market Events on June 11

a16z Crypto Partner: Cash flow is the moat
Most companies spend years creating network effects on traditional infrastructure. Crypto founders inherit them as starting conditions.

Cryptocurrency market makers collectively seek change as it becomes increasingly difficult to make money
There is more and more to do.

How TradeXYZ, xStocks, and Alpaca break down the SpaceX IPO into three different strategies
The value of tokenized products ultimately depends on whether the underlying structure is sound, rather than just the price displayed on the interface.

$75 billion in risk asset redistribution: How will SpaceX's IPO affect U.S. stocks and Bitcoin?
The SpaceX IPO is short-term "capital competition" for the cryptocurrency market, while in the medium to long term, it leans towards "narrative endorsement" for Bitcoin.

Why Is BlackRock Investing $5 Billion in the SpaceX IPO?
What is driving the massive demand for the SpaceX IPO, and why did BlackRock place a $5 billion order? Learn how the historic listing could impact SpaceX stock, Bitcoin, SPCX, and crypto markets.

Morning News | CME Group launches Nasdaq Cryptocurrency Index futures; Asset management giant Janus Henderson strategically invests in Ethena
Overview of Important Market Events on June 10

Bitcoin Layer 2 Network Botanix: Why Did We Choose to Dissolve?
The Bitcoin L2 star project Botanix announced a gradual shutdown, with the team admitting to facing severe challenges from the failure of its business model and the prevailing trends. Users are urged to withdraw all assets before July 9, 2026.

Why did Oracle deliver the strongest financial report in history, yet its stock price fell?
Oracle's revenue for fiscal year 2026 set a record, with AI cloud orders soaring to $638 billion, but massive capital expenditures on computing power led to negative free cash flow, causing a 5% drop in after-hours stock prices.

When the P2P illicit funds from ten years ago turned into 60,000 bitcoins
The largest Bitcoin money laundering case in the UK has new developments: 16,000 Chinese victims are pursuing 61,000 seized Bitcoins across borders, and the dispute over the applicability of UK and Chinese laws will directly determine whether the victims can share in the soaring profits.

Dialogue with OmenX Founder: Why does the prediction market need an evolution from "spot" to "derivatives"?
How to reconstruct the prediction market using leverage?

Galaxy in-depth report: Is Solana still worth paying attention to?
Solana did not fall behind during the bear market. Trading enthusiasm has waned, but the network is more stable, RWA and stablecoins are expanding, and the capital foundation is much thicker than in the previous cycle. The real question is: when the speculative tide recedes, can perpetuals, predicti...

Young people in South Korea make a "final effort" in the epic bull market
The South Koreans' average of two accounts for wildly gambling in the chip bull market reflects the survival anxiety and harsh reality of countless young people trying to break through class barriers behind the nationwide stock trading frenzy for wealth.
What is the connection between Huang Zheng of Pinduoduo and blockchain?
From Pinduoduo's "reverse insurance" to blockchain's smart contracts, this article explains how Huang Zheng's underlying logic uses "certainty" rules to reshape the flow of wealth for ordinary people.
The other side of Musk's trillion-dollar fortune: 85% cannot be sold
SpaceX's IPO is a math problem, and the answer is not on the pricing day, but in the first quarter after the lock-up period ends.
The U.S. government prohibits foreigners from using Fable 5, Anthropic issues a rebuttal
The sudden removal of the two models has caused widespread shock in the tech industry and the AI community.
Citibank releases "2030 Asset Tokenization Market Outlook": 6 major trends may create a $8.2 trillion market
The tokenization of financial assets is moving from pilot projects to large-scale implementation, but this is a gradual evolution rather than a fierce revolution.
The trillion-dollar valuation test: Are the three major super IPOs a celebration for tech stocks or a nightmare for the crypto market?
Tech giants like SpaceX and OpenAI have sparked a $35 trillion super IPO wave. The "suction effect" is not enough to crash the stock and crypto markets, but the test of high valuations is just beginning.
Morning Report | Digital Asset completes $355 million financing led by a16z Crypto; Meta completes operational separation from Manus
Overview of Important Market Events on June 11
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com





