Coinbase Data Breach: Arrest Made, $20M Reward Offered
Coinbase, a leading cryptocurrency exchange, has suffered a significant data breach. A man from Wellington was arrested in connection with the incident, which involved bribed support staff. Less than 1% of Coinbase's monthly transacting users were affected. Meanwhile, Coinbase is set to join the S&P 500 on May 19.
The breach occurred due to an internal compromise, with a small group of Coinbase insiders bribed to steal customer data for social engineering attacks. Stolen data included names, addresses, partial social security numbers, bank account details, and government-issued IDs. Coinbase estimates the incident could cost between $180 million and $400 million. The SEC is investigating whether Coinbase misstated its user numbers in past disclosures.
In response to the breach, Coinbase is offering a $20 million reward for information leading to the arrest and conviction of the attackers. The company has also acquired derivatives platform Deribit for $2.9 billion. Despite the recent challenges, Coinbase stock is trading after-hours at $247.45 (+1.23%), up 19.52% over the past five days.
The cryptocurrency industry must address security challenges and regulatory hurdles to truly mature. Coinbase's upcoming inclusion in the S&P 500 signals a growing acceptance of cryptocurrencies, despite recent setbacks. The company continues to expand its offerings, most recently with the acquisition of Deribit.
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