Coinbase disclosed that unknown cybercriminals infiltrated its systems and accessed data from a small group of customers. The attackers targeted overseas customer support agents, particularly in India, offering bribes in exchange for sensitive account data. These insiders were tricked into copying information from internal tools, impacting less than 1% of Coinbase’s 9.7 million monthly transacting users. The stolen data included masked Social Security digits, partial bank account details, and government ID images, but no private keys or funds were accessed.
The attackers then used the stolen data to impersonate Coinbase and socially engineer victims into surrendering their cryptocurrency.
Following these scams, they unsuccessfully tried to extort Coinbase for $20 million by claiming access to internal documents and customer information. The company responded by terminating the compromised agents and reporting that no Coinbase Prime accounts were affected. Customers who lost funds due to social engineering are being reimbursed, although Coinbase has not confirmed the exact number of victims.
To improve defenses, Coinbase introduced stricter identification procedures for suspicious accounts and enhanced security protocols to deter insider threats. It also launched a $20 million reward fund for leads that could help identify and convict the cybercriminals behind the breach. Coinbase advised users to use two-factor authentication, enable withdrawal allow-listing, and remain cautious of messages urging fund transfers.
The goal is to reduce risk from similar scams that exploit trust in the platform’s brand.
Coinbase told Bloomberg that suspicious activity was first detected as early as January 2025. Although the attackers claimed to have gained “on-demand” access for five months, Coinbase disputes this assertion. Philip Martin, Coinbase’s Chief Security Officer, confirmed several specific bribery incidents, but denied persistent system access throughout the period. Coinbase continues to investigate and take steps to prevent future insider compromise and improve customer data security.
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