Coinbase Hit by Major Security Breach, Data Compromised

Coinbase disclosed a security breach through a statement from CEO Brian Armstrong. Some overseas support agents were bribed, leading to unauthorized access to customer data. This incident was revealed publicly in mid-May 2025.

Hackers gained access to personal customer information, although account credentials remained secure. Coinbase reacted by terminating involved staff and announcing a $20 million bounty for information. Brian Armstrong stated, “These attackers have been approaching our overseas customer support agents, looking for a weak leak, someone who would accept a bribe in exchange for sharing some customer information with them. Unfortunately, they were able to find a few bad apples.”

The breach affects approximately 1% of Coinbase’s monthly users, introducing potential financial losses. The announcement of the incident has set off concern within the user community, raising questions about ongoing cybersecurity measures.

Potential financial repercussions include up to $400 million in costs. The situation occurs as Coinbase prepares to join the S&P 500 index, posing regulatory scrutiny and further pressure to enhance security protocols.

The Coinbase incident echoes past breaches involving insider threats. Such events typically expose human vulnerabilities within organizational structures rather than flaws in blockchain technology itself.

Experts from Kanalcoin suggest this incident underscores the importance of strengthening internal security measures to prevent bribery and unauthorized data access. This trend shows a growing sophistication in attacks targeting the human element of digital exchanges.