# Coinbase Hack: A Lethal Threat to Crypto Investors =====================================================

The recent security breach at Coinbase, one of the largest cryptocurrency exchanges in the US, has sent shockwaves through the industry and left investors wondering about their safety. The hack, which exposed highly sensitive user data, including home addresses and account balances, has raised serious concerns about the company's ability to protect its users.

### A Life-Threatening Consequence

As TechCrunch founder Michael Arrington warns, this breach could have devastating consequences for Coinbase's users. "Die by the Bitcoin" is a chilling phrase that perfectly captures the gravity of the situation. With access to home addresses and account balances, cybercriminals now have enough information to target large crypto investors, putting their lives at risk.

"I am a long-time investor in and champion of @coinbase," Arrington tweeted, but his enthusiasm was tempered by disappointment over how the company is handling the breach. "This hack - which includes home addresses and account balances - will lead to people dying. It probably has already."

### The Human Cost Far Exceeds Financial Damages

The estimated financial loss from the breach is staggering, ranging from $180 million to $400 million. However, Arrington argues that this number pales in comparison to the human cost. "You can't refund someone's life," he said. "Companies that fail to protect customer data must face consequences, and executives should at least face prison time."

The situation is already dire for some of Coinbase's wealthiest users, who were previously targets of violent kidnappings. The breach has only made them more vulnerable.

### A Call for Reevaluation of Regulations

Arrington also calls for rethinking government regulations around "know-your-customer" (KYC) processes, which require users to verify their real identities to access online platforms. He argues that these policies were initially enforced to help governments monitor and tax crypto activity, but they now create serious safety risks when exchanges mishandle user data.

### A Response from Coinbase

Coinbase has issued a handful of corporate-style statements addressing the concerns raised by Arrington and others. The company claims to take the matter seriously and is working with law enforcement to track down the criminals behind the breach.

However, for many investors, these assurances come too late. They are left wondering how this could have happened under their watch, and what measures will be taken to prevent similar breaches in the future.

### A Warning to Companies

As Arrington so eloquently puts it, "Using the cheapest option for customer service has its price. And Coinbase's customers will bear that cost." The question on everyone's mind is: What price will they pay?