Coinbase, a leading cryptocurrency exchange, experienced a data breach in May 2025. Employees were bribed to access customer information, exposing data of thousands of users.

The breach emphasizes the vulnerability of insider threats and raises concerns over data security, leading to Coinbase strengthening its protection measures and offering bounties for arrest information.

Coinbase Insider Bribery Uncovered in May Breach

Coinbase faced a serious breach of data security as employees were bribed by attackers. This information leak occurred in early May, involving the compromised personal information of thousands of users.

“What these attackers were doing was finding Coinbase employees and contractors based in India… and bribing them in order to obtain customer data… there were a number of specific bribery incidents… but they did not have persistent access over the course of the entire period.” – Philip Martin, Chief Security Officer, Coinbase

The incident was disclosed by Coinbase’s leadership, including CEO Brian Armstrong. They emphasized the lack of sensitive credential exposure despite customer data susceptibility.

$400 Million Security Overhaul Planned by Coinbase

The infiltration has significant implications, rendering Coinbase vulnerable to phishing attacks due to leaked customer details. The exchange plans to spend up to $400 million on security enhancements.

Coinbase aims to deter such attacks by offering a $20 million bounty for information on the perpetrators. This reflects the company’s commitment to reinforcing preventive strategies.

Pattern of Insider Threats in Crypto Exchanges

Previously, exchanges like Binance and BitMEX faced similar breaches, emphasizing the recurring nature of insider threats in the crypto world and suggesting increasing vigilance.

Experts note the hack’s parallels to past events, advocating for enhanced protocols and stringent employee vetting to minimize threats. Kanalcoin insights suggest a shift towards integral security measures.

Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.

The post Coinbase Hack: Insider Bribery Exposes User Data appeared first on Kanalcoin.

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Filed under: News - @ May 17, 2025 5:22 pm