Coinbase Confirms DOJ Investigation Following Major Security Incident
Summary
The US Department of Justice is investigating a security breach at Coinbase, the largest US-based cryptocurrency exchange. The breach involved criminals bribing employees and contractors in India to access sensitive client data. Coinbase is not under investigation; the DOJ is targeting the criminals responsible. The breach was revealed when Coinbase received an email from a threat actor on May 11, claiming possession of customer account information and internal documents. Estimated losses range from $180 million to $400 million. Coinbase refused a $20 million ransom demand and instead established a $20 million reward fund for information leading to the perpetrators' arrest and conviction.
