BREAKING 🚨 NEWS : COINBASE HACK – issue is KYC. The more we KYC the more at risk the user is. pic.twitter.com/SN2eQKjQWI
— Jason Ai. Williams (@GoingParabolic) May 15, 2025
$COIN was hacked. A group of support agents were bribed by criminals apparently. Customer data was breached as a result. pic.twitter.com/7Xr1Y58vOb
— Markets & Mayhem (@Mayhem4Markets) May 15, 2025
Coinbase has confirmed a major security breach, revealing that hackers accessed customer data as early as January. The attack was an inside job, with cybercriminals bribing overseas support agents to steal sensitive information. The company has refused to pay the $20 million ransom, instead offering a bounty for information leading to arrests.
The breach affected less than 1 percent of Coinbase’s monthly users, but the stolen data includes names, addresses, phone numbers, emails, masked bank account details, government ID images, and the last four digits of Social Security numbers. While no passwords, private keys, or funds were compromised, the leaked information could be used for social engineering scams.
Coinbase detected suspicious activity months before the ransom demand, terminating employees involved and enhancing fraud monitoring protections. The company has promised to reimburse victims who were tricked into sending funds to attackers.
The incident highlights serious risks in KYC (Know Your Customer) regulations. The more personal data exchanges collect, the greater the risk of insider leaks. This breach proves that centralized exchanges remain vulnerable, even when security measures appear strong.
Coinbase’s refusal to pay the ransom is a bold move, signaling that it will not negotiate with criminals. Instead, the company has established a $20 million reward fund for information leading to the arrest and conviction of those responsible.
The fallout from this breach is far from over. With crypto markets already facing volatility, Coinbase must restore trust among users and strengthen security measures to prevent future attacks.
Sources:
https://mashable.com/article/coinbase-data-breach-20-million-ransom