Coinbase Reports Major Cyberattack, Faces Up to $400 Million in Losses

Coinbase, one of the world’s top cryptocurrency exchanges, has disclosed a cyberattack that could cost the company up to $400 million. In a regulatory filing, Coinbase stated that hackers breached account data of a small subset of users and subsequently tricked them into transferring funds. Although login credentials and passwords were not compromised, sensitive data such as names, addresses, and emails were stolen.

The attackers had paid several external employees and contractors in support roles outside the U.S. to obtain internal information. All involved individuals have since been dismissed. Coinbase said it received an email from an unidentified source on May 11, claiming to possess internal documents and customer data. In response, the company refused to pay a $20 million ransom and has involved law enforcement. Additionally, Coinbase is offering a $20 million reward for information leading to the attackers.

To mitigate the damage, Coinbase will reimburse affected customers and has estimated the total financial impact to be between $180 million and $400 million. The company is also taking steps to enhance its cybersecurity, including opening a new support hub in the U.S.

This incident comes just before Coinbase is set to be added to the S&P 500 index, marking a significant moment for the cryptocurrency sector. Security challenges remain a persistent issue in the industry, highlighted by other recent high-profile breaches.