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Coinbase Insider Breach: Support Contractors Stole Customer Data

Published on
19 May, 2025 | 18:07
Image: AI-generated for bitcoin24.com

On May 15, 2025, U.S.-based crypto exchange Coinbase revealed a serious data breach involving insider misconduct. According to The Register, several external support contractors allegedly sold access credentials to hackers, allowing them to steal sensitive customer data.

The stolen information includes:

  • Full names and contact details

  • Partial Social Security numbers

  • Government-issued ID images

  • Masked bank account numbers

  • Transaction history

Crucially, no private keys, passwords, or crypto funds were compromised during the breach (Reuters).

The attackers are now demanding a $20 million ransom in Bitcoin in exchange for not releasing the stolen data. Coinbase CEO Brian Armstrong has confirmed the company will not negotiate with the attackers. Instead, Coinbase is offering a $20 million reward for information leading to their arrest (The Register).

Coinbase has since terminated the involved contractors and is establishing a U.S.-based support center to prevent future risks. The total financial impact of the incident could exceed $400 million, including remediation and customer compensation (AP News).

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Source: CoinGecko