69,461 Users Impacted In Coinbase Breach, New Filing Shows

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Coinbase Breach: 69,461 Users Left in the Lurch! 😱💸

So, it turns out that Coinbase Global Inc. had a little hiccup—more like a full-blown data disaster! 🚨 A new filing with the Maine Attorney General’s Office has confirmed that a whopping 69,461 individuals were affected during the December 2024 incident. Just what we needed, right? More reasons to question our life choices in the crypto world!

And guess what? The hackers weren’t just playing around; they demanded a $20 million ransom! 💰 Because, obviously, who wouldn’t want to pay that much to keep their data safe? According to Coinbase, these digital bandits targeted overseas customer support staff, luring them in with cash incentives. Because nothing says “trustworthy” like a cash bribe!

But don’t worry, Coinbase is on it! They’re committed to compensating victims while the investigations are still ongoing. How generous! 🙄 Although the attackers managed to snag personal details like names, home addresses, and email information, Coinbase assures us that passwords, private keys, and user funds were left untouched. Phew! What a relief! Or is it? 🤔

In a filing with the U.S. Securities and Exchange Commission, Coinbase tried to calm the storm, but many users are still left wondering about the long-term impact of having their KYC data exposed. Because, you know, nothing says “secure” like having your personal info floating around in the digital ether!

Federal authorities have jumped into the fray, with the United States Department of Justice now investigating at Coinbase’s request. Meanwhile, the SEC is busy reviewing whether Coinbase inflated user numbers before its 2021 public listing. Because who doesn’t love a good scandal? 📈

Coinbase’s Chief Legal Officer, Paul Grewal, referred to the SEC’s action as a “holdover investigation” from a previous administration. He reassured everyone that it may not lead to serious consequences. Because that’s comforting, right? 🙃

In a twist that no one saw coming, Coinbase has offered a $20 million reward for information about the hackers. They’re hoping this bounty will lead to arrests and send a message to future attackers. Because nothing says “don’t mess with us” like a big ol’ reward! 🕵️‍♂️

Public Reaction and KYC Concerns Grow as Costs Mount

Meanwhile, the public is not holding back. Coinbase’s months-long delay in responding to the breach has sparked a wave of criticism. Tech founder and investor Michael Arrington was particularly vocal, pointing out that the exposed data could cause harm that no amount of compensation can fix. Thanks for the reminder, Michael! 😬

Brian, Thanks for the comments. Apologies for the Bloomberg headline… @emiliemc also mentioned to me after posting that Coinbase had reached out to the DOJ.

I fully understand that holding executives liable criminally would create a situation where the best people wouldn’t…

— Michael Arrington 🏴‍☠️ (@arrington) May 21, 2025

Coinbase estimates that the breach could lead to expenses between $180 million and $400 million for damage control and reimbursements. Just a casual amount, right? 💸 As government regulators and users question the security of their data on major crypto platforms, the tension is palpable!

Arrington didn’t stop there; he also criticized KYC laws, calling them ineffective and dangerous. He pointed fingers at a system where profit motives and weak penalties for data breaches allow these events to keep happening. Because who needs accountability in the crypto world? 🙄

And let’s not forget, crypto scams are on the rise! It’s not just big platforms like Coinbase that are under attack; even DeFi protocols are feeling the heat. One of the most notorious cases was the Bybit exploit, which resulted in a jaw-dropping $1.4 billion crypto theft. Talk about a heist! 💥

But it’s not just the big players; everyday investors are falling victim to well-planned scams too. Just recently, a woman from Maryland lost $3 million in a crypto scam known as “pig butchering.” The fraudsters, believed to be from Southeast Asia, built trust over weeks using a fake Korean messaging app before making off with her funds. Because trust is so easy to break in the digital age! 🐷💔

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2025-05-21 18:38