Coinbase, the largest digital currency exchange in the US, has confirmed that a Coinbase hack (data breach) targeting big users includes Roelof Botha, a Sequoia Capital managing partner. The attack exposed names, addresses, phone numbers, details of people’s government IDs, banking information and information about their accounts. Experts believe that it will take up to $400 million to handle the incident, paying back customers, mainly because Coinbase is joining the S&P 500 index.
Key Takeaways:
- Coinbase hack where data was stolen by outsiders who paid off Coinbase employees to access the system.
- Rather than submitting to the extortionists’ demands, Brian Armstrong issued a bounty of $20 million for the persons behind the incident.
- This year, over $2.2 billion in assets were stolen from the cryptocurrency industry.
- Because of recent attempts to kidnap crypto individuals in France, the government is taking steps to protect executives.
Criminals launch attacks aimed at high-net-worth individuals
The focus of the Coinbase hack attackers seems to be on the tech industry’s powerful and wealthy members. It seems from Roelof Botha’s leak that the company concentrates on profitable customers. As a Sequoia partner for more than 15 years, Botha helped YouTube and Instagram successfully launch and grow.
Several sources state that customers dealing with the loss of data had notifications from the company about possible unauthorized activity last weekend. Back in January, the company saw odd changes in their customer service records, but until recently, they had not explained the extent of what happened.
Coinbase does not pay in response to ransom asks
The thieves stole the data and asked for $20 million to ensure the public was not made aware of the breach. When extorters tried to target Coinbase, CEO Brian Armstrong strongly opposed them. Rather than giving in to the hackers, Armstrong said he would give $20 million for details about who committed the Coinbase hack.
https://x.com/coinbase/status/1922967577568985185
The firm showed its commitment to security even at the risk of losing a positive reputation. The company has opted to remain silent on the affected customers’ details.
There has been an increase in cryptocurrency security threats
It demonstrates the rise of security concerns affecting the cryptocurrency industry. It was discovered by Chainalysis that cybercriminals managed to steal approximately $2.2 billion from crypto businesses in one year.
There is increased worry worldwide about the personal safety of crypto executives. In France, recent events have led the authorities to put in place safeguards for business leaders after break-ins and attempts to kidnap them. Enrico was involved in a failed kidnapping attempt where three of his relatives were chased during the day.
Conclusion: Coinbase Hacks
Crypto business professionals have to take extra security steps everywhere, driven by a series of kidnapping attempts, including one attempt which saw Paymium’s CEO’s family members taken in broad daylight. Some of the main crypto exchanges are frequently attacked by skilled hackers, as seen with Bybit’s recent breach by North Korean hackers which caused a $1.5 billion robbery that set a new theft record.