Coinbase Confirms Data Breach, Offers $20 Million Reward

Coinbase, a prominent cryptocurrency exchange, has acknowledged that cyber criminals successfully bribed and recruited a group of rogue support agents, leading to the theft of user data. The exchange confirmed this breach in a recent blog post, detailing the extent of the data compromised and the steps being taken to address the issue.

The stolen information includes government ID images, account balances, and corporate data. However, Coinbase assured users that two-factor authentication codes and private keys were not breached, mitigating the risk of further unauthorized access. The exchange has taken immediate action by terminating the employment of the staff involved in the breach and has referred the matter to U.S. and international law enforcement agencies. Coinbase has also announced its intention to press criminal charges against the perpetrators.

In response to the incident, Coinbase has pledged to reimburse customers who were deceived into sending funds to the attackers. Additionally, the exchange has offered a substantial $20 million bug bounty to anyone who provides information that leads to the arrest of the criminals responsible for the breach. This significant reward underscores Coinbase's commitment to enhancing its security measures and protecting its users from future threats.

The confirmation of this cyber criminal activity comes three months after on-chain sleuth ZachXBT reported that Coinbase users had lost a significant amount of funds to social engineering scams. While Coinbase did not immediately respond to inquiries regarding ZachXBT's claim, the exchange's proactive measures and transparency in addressing the recent breach demonstrate its dedication to maintaining the trust and security of its user base.