Crypto Cyberattack: Coinbase Hit in Major Data Breach Scam

The biggest cryptocurrency exchange Coinbase, was recently hit by a serious cyberattack. Hackers managed to steal personal information from around 97,000 customers. They did this by bribing some customer support workers who were based overseas. The stolen information included things like names, addresses, parts of Social Security numbers, bank account details, and even photos of government IDs

What the Hackers Did
Coinbase recieved  threatening email from hackers in which they mentioned they had stolen customer and internal company data. They asked for $20 million in Bitcoin and warned that if Coinbase didn’t pay, they would leak the stolen information publicly.
Instead of giving what the hackers wanted, Coinbase’s CEO Brian Armstrong decided not to pay the ransom. Also, the company offered a $20 million reward to anyone who could help catch the hackers. Coinbase is now working with the police and other authorities to investigate what happened and also fired the employees involved.

How This Affected Customers
The hackers didn’t directly take money from people’s Coinbase accounts, but they did manage to steal a lot of personal information — like names, ID details, and contact info. Using that data, they tricked users by pretending to be Coinbase support. They reached out through phone calls and emails that looked very convincing. Many people were fooled and ended up sharing sensitive information or even sending money, leading to big financial losses.

A well-known crypto researcher, ZachXBT, reported that in just December 2024 and January 2025, Coinbase users lost over $65 million to these kinds of scams. He warned that if these scams continue, the total losses for the year could go beyond $300 million.

Financial and Legal Consequences
The whole situation, from fixing the problems to paying back affected users, might cost the company somewhere between a $180 million and $400 million statement given by Coinbase.
After the news became public, Coinbase’s stock was down by over 7%, which was especially bad timing since the company was about to get listed on S&P 500 index (a major stock market benchmark).
On top of that, Coinbase is now getting investigated by the U.S. SEC. The SEC is looking into how the company used to report user data — especially a metric called “verified users” — before its 2021 public stock listing. Coinbase says it was transparent about it and doesn’t report that number anymore.

How Coinbase Is Responding
Coinbase has now taken several steps to respond to the cyberattack and limit any future damages:

• Refused to Pay Hackers : Instead of giving the ransom of $20 million, CEO Brian Armstrong put up a $20 million reward for anyone who can help identify and catch the attackers.
• Terminated Involved Staff : The company fired the overseas support staff who were bribed and helped the hackers gain access to customer data.
• Working with Authorities : Coinbase is now actively helping law enforcement investigate the breach and find the people responsible.
• Improving Security : The company is making its online security stronger to better protect users’ information and stop future attacks.
• Paying Back Affected Users : Coinbase has promised to fully pay back customers who lost money because of the scam.

How Coinbase Users Can Stay Safe
Here are some easy ways to protect your Coinbase account and personal info:

• Enable Two-Factor Authentication (2FA): This will add an extra layer of security. Even if someone knows your password, they won’t be able to log in without a second code.
• Watch Out for Scams: No one from Coinbase will ask for your password, 2FA code, or try to control your device. If you get a notification like that, it’s a scam just ignore it.
• Take a look Who’s Really Reaching Out: Reply to emails, texts, or calls that you’re sure are from Coinbase. If anything feels fishy or unexpected, don’t reply.
• Keep an Eye on Your Account: Make a habit of checking your account activity on a daily basis to catch anything unusual.
• Report Anything Suspicious: If you find that something doesn’t seem right or you think someone tried to scam you, contact Coinbase support immediately so they can help.