Coinbase Breach Prompts $400M Response, SEC Probe

Coinbase, the largest US cryptocurrency exchange, was hit by a major cyberattack in which hackers bribed overseas support agents to access personal data—including names, email addresses, partial Social Security numbers, and government ID images—of less than 1% of its users. While passwords, private keys, and customer funds were not directly compromised, the breach has enabled sophisticated social engineering scams, and Coinbase has pledged to reimburse any affected users. The attackers demanded a $20 million ransom, which Coinbase refused, offering instead a $20 million bounty for information leading to the hackers' arrest. The breach is projected to cost Coinbase up to $400 million in remediation and reimbursements, as revealed in regulatory filings. News of the attack, which broke just before Coinbase's inclusion in the S&P 500, caused a sharp drop in its stock and increased concerns about trust and security in the crypto sector. Additionally, Coinbase is now facing a separate SEC investigation into its user reporting practices.