Coinbase Offers $20 Million Reward After Data Breach

Coinbase has initiated a significant response to a recent data breach, announcing a $20 million reward program aimed at identifying and bringing to justice the individuals responsible for the incident. The breach involved cybercriminals who bribed overseas customer support agents to extract sensitive customer data from internal systems. This data included names, contact details, masked Social Security Numbers (SSNs), bank data, and account activity.

The breach affected less than 1% of Coinbase’s monthly transacting users, but it is important to note that passwords, private keys, or access to customer funds were not compromised. Coinbase Prime accounts also remain unaffected by this incident. The attackers attempted to use the stolen information to conduct social engineering scams, impersonating Coinbase and demanding a $20 million ransom, which the company firmly rejected.

In response to the breach, Coinbase has stated that it is cooperating closely with law enforcement to pursue the harshest penalties possible. Instead of paying the ransom, the company has established a $20 million reward fund for information leading to the arrest and conviction of the criminals responsible for the attack. This proactive approach underscores Coinbase’s commitment to protecting its users and holding the perpetrators accountable.

Coinbase has also confirmed that any retail customers who were tricked into sending funds as a result of this incident would be reimbursed following an internal review. Affected users have already been notified, ensuring transparency and support during this challenging time. This incident highlights the ongoing threat of cybercrime and the importance of robust security measures in the financial sector.