Coinbase, the major cryptocurrency exchange, has disclosed a data breach impacting 69,461 users. The breach occurred in December 2024, involving unauthorized data access by overseas support center contractors.
This incident highlights significant security challenges within crypto exchanges, underscoring vulnerabilities involving internal personnel rather than external hackers.
Unauthorized Access by Overseas Contractors in 2024
In May 2025, Coinbase publicized a significant data breach stemming from December 2024. Unauthorized access by overseas contractors led to exposure of sensitive customer data, without affecting actual crypto assets.
Coinbase’s CEO, Brian Armstrong, confirmed the company refused a $20 million ransom. Armstrong stated, “Cyber criminals bribed and recruited a group of rogue overseas support agents to steal Coinbase customer data.” The breach primarily impacted personal information, such as full names and government-issued ID images.
No Financial Loss for 69,461 Affected Users
Despite personal data exposure, no user funds or cryptocurrencies were compromised. This has maintained customer trust to some extent, although concerns about internal security measures persist.
Regulatory and market responses have remained cautious yet watchful. Coinbase’s decision to refuse ransom demands and provide identity protection aids in mitigating financial impacts.
Insider Threats: A Growing Concern for Crypto Exchanges
Previous crypto exchange breaches primarily involved external hacks, differentiating this insider threat. Coinbase’s public disclosure reflects a shift towards transparency, crucial for maintaining industry trust.
Experts from Kanalcoin suggest past incidents underline the need for robust internal controls. The reliance on contractors presents ongoing security challenges in the crypto industry.
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