Coinbase’s $20M Ransom Rejection: When Rogue Contractors Get Greedy
Coinbase confirmed that rogue contractors pilfered customer data and demanded a $20M ransom. The breach, affecting under 1% of users, was revealed in an SEC filing. Despite the heist, passwords and funds remained secure. Coinbase refused to pay, opting instead to bolster security and reimburse affected users.
Hot Take:
Looks like the crypto cowboys over at Coinbase had a bit of a rodeo with some rogue contractors. With customer data on the loose and a $20 million ransom demand, the Wild West of cryptocurrency just got a little wilder. Yeehaw!
Key Points:
- Coinbase experienced a data breach involving rogue contractors who stole customer data and demanded a $20 million ransom.
- The breach affected less than 1% of Coinbase users, with data like contact details, partial SSNs, and account histories exposed.
- The breach was part of a coordinated campaign facilitated by overseas support personnel with legitimate system access.
- Coinbase detected unauthorized access months prior, took corrective actions, and is cooperating with law enforcement.
- The company estimates the breach may cost between $180M–$400M for remediation and reimbursements.
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