Coinbase Data Breach Will ‘Lead to People Dying,’ TechCrunch Founder Says
Coinbase experienced a significant data breach, exposing sensitive customer information, including home addresses and account balances. TechCrunch founder Michael Arrington warned that this breach could lead to fatalities, citing a rise in kidnapping attempts targeting wealthy crypto holders. He criticized the current know-your-customer (KYC) regulations and called for prison sentences for executives who fail to protect customer data adequately. Coinbase refused to pay a $20 million ransom demanded by cybercriminals and instead offered a reward for information leading to the attackers' arrest. The U.S. Justice Department has initiated an investigation into the breach. High-profile kidnapping incidents involving crypto owners have raised safety concerns, prompting increased demand for security services among wealthy individuals in the crypto space. Arrington emphasized the need for stricter data protection measures, while former Coinbase CTO Balaji Srinivasan argued that regulatory pressures on KYC are a larger issue.
