Coinbase Data Breach: Customer Information Stolen - Details

Coinbase Data Breach Confirmed

Coinbase, a leading cryptocurrency exchange, has officially acknowledged a security breach impacting its systems. Sensitive customer data, including government-issued identification, was reportedly compromised during the incident.

Extortion Attempt and Data Acquisition

A recent filing with U.S. regulatory bodies reveals that the company was contacted by a hacker who claimed to have acquired customer account information. The hacker subsequently demanded a monetary ransom to prevent the public release of this stolen data.

The breach was facilitated by exploiting access granted to external contractors and employees in support roles located outside of the United States. These individuals reportedly collected data from Coinbase’s internal systems as part of their job duties. The company confirms these support staff members are no longer with Coinbase.

Detection and Customer Notification

Coinbase’s security systems initially detected the malicious activity several months prior. Proactive measures were taken to warn customers whose information may have been accessed, aiming to mitigate potential misuse of compromised data.

The company has firmly stated its refusal to comply with the hacker’s ransom demands. CEO Brian Armstrong disclosed via a social media post that the requested amount totaled $20 million.

Scope of Compromised Data

The stolen data encompasses a range of personally identifiable information. This includes customer names, postal addresses, email addresses, and phone numbers.

Furthermore, the last four digits of users’ Social Security numbers, masked bank account details, and certain banking identifiers were also accessed. Critically, copies of customers’ government-issued identity documents – such as driver’s licenses and passports – were also taken.

In addition to customer data, some internal corporate documentation was also reportedly stolen during the security incident.

Response and Future Security Measures

Coinbase has announced plans to establish a new, U.S.-based customer support center. This move is coupled with a commitment to bolster its overall security infrastructure.

Impact and Financial Implications

According to a statement from Coinbase spokesperson Natasha LaBranche, the number of affected customers represents less than 1% of the company’s 9.7 million monthly active users, as reported in their latest annual report concluding March 2025.

The company anticipates incurring costs ranging from $180 million to $400 million to cover incident remediation efforts and potential customer reimbursements.

If you are a Coinbase employee with information regarding this breach, please contact the reporter via Signal (username: zackwhittaker.1337) or email (zack.whittaker@techcrunch.com).

This article has been updated to include additional information from Coinbase.