Shock of 400 Million Dollar to Coinbase: Facing the Biggest Data Leak in Its History - Coin Bulletin

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The US's major cryptocurrency exchange Coinbase announced that the cost of the incident involving the theft of customer data will be between 180 million and 400 million dollars.

The US-based cryptocurrency exchange Coinbase has been shaken by a large-scale data breach. In its official report to the SEC, Coinbase disclosed the details of the incident and the cost of the leak. It was stated that hackers bribed Coinbase's representatives abroad to obtain user information.

It has been revealed that the criminals involved in the incident obtained sensitive information of users such as addresses, phone numbers, email addresses, and government IDs, which are identity verification (KYC) data. It is believed that this information was later used in social engineering attacks to deceive and defraud users. Coinbase stated that the employees responsible for the breach were immediately terminated following the incident's exposure.

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(# 400 million dollar invoice

Coinbase estimates that this serious incident will impose a financial burden of between $180 million and $400 million on the company. It was emphasized that a large portion of this amount consists of voluntary reimbursements to compensate for users' losses and expenses related to rectifying the incident.

On the other hand, the individuals responsible for the data breach demanded a ransom of 20 million dollars from Coinbase management to cover up the incident. Coinbase CEO Brian Armstrong announced that they have launched a 20 million dollar reward program for the purpose of finding the culprits.

The echoes of the incident continue on social media. While some users appreciate Coinbase's transparency, a group of users criticized the exchange for announcing the data leak too late. Wintermute CEO Evgeny Gaevoy, in his statement, harshly criticized the situation, stating that it highlighted the risks of KYC processes.