Coinbase Reels From Data Breach That Could Cost $400M

Coinbase is reeling from an inner information breach that might value as much as $400 million, simply days earlier than it’s set to affix the S&P 500 index.

The corporate disclosed that exterior actors bribed ”contractors or staff” to realize entry to inner methods and delicate buyer information. The attackers then tried to extort $20 million from the alternate, threatening to leak the compromised data.

Coinbase didn’t pay the ransom, and mentioned lower than 1% of its month-to-month transacting customers’ information was affected by the assault. Coinbase has additionally fired the contractors concerned within the breach.

Coinbase mentioned it would reimburse customers who misplaced funds, a transfer anticipated to value between $180 million and $400 million, in accordance with a current Securities and Change Fee (SEC) submitting.

Coinbase (COIN) shares plunged 7% to $244.44 on Thursday, amid rising issues over the breach and a brand new SEC investigation into whether or not the agency misled buyers forward of its 2021 IPO.

The alternate, set to affix the S&P 500 index on Could 19, was essentially the most impersonated crypto model by scammers in 2024, in accordance with information from Mailsuite. 

https://t.co/evpIBMFvRW pic.twitter.com/f6UPdkL5R0

— Brian Armstrong (@brian_armstrong) Could 15, 2025

SEC Investigates Coinbase For Probably Deceptive Traders Forward Of 2021 IPO

Including to the crypto alternate’s woes was a New York Occasions report that the SEC launched an investigation into whether or not it had misled buyers and inflated its consumer numbers forward of its public debut in 2021. 

The main US crypto alternate downplayed the investigation from the monetary regulator, calling the SEC’s  probe “a hold-over investigation” from the prior anti-crypto administration.

The SEC zoned in on Coinbase’s declare of “100+ million verified customers” that appeared in its advertising and IPO documentation in 2021. Coinbase stopped reporting this metric in 2022, a submitting with the SEC reveals. 

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