Hackers Demand $20m From Coinbase In Bitcoin Ransom

Hackers have accessed Coinbase’s internal systems through insider help and have demanded $20m in Bitcoin to stop the release of stolen customer data.

Hackers are demanding $20 million in Bitcoin from Coinbase to prevent them from releasing private customer information they claim to have stolen.

In response, Coinbase CEO Brian Armstrong is fighting back. He has offered a $20 million reward to anyone who can provide information that leads to the arrest of the attackers.

The hackers reportedly worked with some foreign customer support agents who were hired by Coinbase. They allegedly bribed and recruited these workers to help them access Coinbase’s internal systems. Using this access, the attackers were able to reach sensitive customer support areas. Coinbase said that less than 1% of users who actively use the platform each month were affected. Still, some important information was stolen, including government ID photos, account balances, and corporate data.

Three months ago, an online investigator had already claimed that users on Coinbase had lost around \$300 million due to social engineering scams. Coinbase didn’t directly respond to that earlier claim, but now, many are wondering if both incidents are connected.

The company estimates that the total cost of fixing the problem and compensating affected users could be between \$180 million and \$400 million. Anyone who was tricked into sending money to the hackers will have their funds returned.

Coinbase quickly fired the employees involved in the incident. They also reported the matter to U.S. and international law enforcement. The company has said it plans to take criminal action against those found guilty.

Despite the breach, Coinbase reassured users that their actual cryptocurrency funds are still safe. The keys used to access crypto assets were not touched by the hackers. “Your funds remain secure,” the company stated, promising to keep watching the situation closely as they work with the police to find those responsible.

Cryptocurrency remains an attractive target for hackers because it can be moved easily and permanently. Criminals often pretend to be Coinbase to trick people, using the company’s strong reputation as one of the top exchanges in the world. This situation once again highlights the constant security challenges that crypto platforms face.

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