# Crypto Firm Coinbase Hit with Massive Data Breach: Hackers Bribed Employees for Customer Info

Coinbase, the largest cryptocurrency exchange based in the US, has suffered a devastating data breach, with hackers obtaining personal data on customers through bribery of company employees. In a shocking revelation, CEO Brian Armstrong revealed that the attackers had bribed some customer service agents living outside the US to hand over sensitive information, including names, dates of birth, and partial social security numbers.

The stolen data allows hackers to conduct sophisticated social engineering attacks, impersonating Coinbase customer support agents to trick customers into sending their funds to the attackers. This strategy has proven successful in the past, with many large companies falling victim to similar hacks and data breaches.

Coinbase did not disclose the exact number of customers whose data was stolen or who fell prey to social engineering scams. However, the company pledged to reimburse any affected individuals. In a Securities and Exchange Commission (SEC) filing, Coinbase estimated that it would incur significant costs, ranging from $180 million to $400 million, for remediation efforts and voluntary customer reimbursements.

The SEC filing also revealed that Coinbase had previously detected some of its customer service agents accessing data without business need. Those employees were fired, and the company strengthened its fraud prevention measures in response to the incident.

On Sunday, Coinbase received an email from the attackers demanding a ransom of $20 million worth of bitcoin not to publicly release the stolen customer data. In a defiant statement, Armstrong said the company would refuse to pay the ransom and instead offer a $20 million bounty for anyone who provided information leading to the attackers' arrest.

"For these would-be extortionists or anyone seeking to harm Coinbase customers, know that we will prosecute you and bring you to justice," Armstrong said. "And know you have my answer." The company's commitment to protecting its customers and pursuing justice is clear, as it vows to take action against those responsible for this heinous act.

The incident serves as a stark reminder of the importance of cybersecurity and the need for companies to prioritize data protection. As the cryptocurrency landscape continues to evolve, Coinbase's commitment to safeguarding customer information will be crucial in rebuilding trust with its users.