Key Takeaways
- Coinbase disclosed a data breach affecting 69,000 users, caused by insider access.
- Impacted customers receive complimentary credit monitoring and identity theft protection.
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Coinbase’s recently disclosed data leak, which was the result of staff misconduct, affected over 69,000 users, including upwards of 200 in Maine, the company said in a filing with Maine authorities.
The incident, which occurred in late December 2024, went undetected until May 11, 2025, according to the disclosure.
Coinbase said it is offering affected users one year of free credit monitoring and identity protection through IDX as part of its effort to mitigate the damage. The package includes identity restoration assistance, dark web monitoring, and a $1 million insurance reimbursement policy.
The breach was first reported by Coinbase on May 15, when the firm said that extortionists had bribed overseas customer support agents to gain unauthorized access to user data. The attackers reportedly demanded a $20 million ransom in exchange for not leaking the stolen information.
Instead of complying with the demands, Coinbase is offering a $20 million bounty for information leading to the arrest of those responsible. The company also stated it would reimburse impacted users.
While the compromised data includes sensitive personal information, Coinbase confirmed that private keys and direct account access were not affected.
Following its first report of the incident, Coinbase told Bloomberg this week that the company is working with the US Department of Justice and other domestic and international law enforcement agencies to investigate the case.
The insider-driven data exposure has led to a wave of lawsuits against Coinbase, with plaintiffs across multiple US states alleging that the company failed to implement adequate security measures to protect user information.
In addition to seeking damages for the harm caused, some lawsuits are demanding that Coinbase purge affected data and engage independent security auditors to prevent future incidents.
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