Ethical Hacking News
Coinbase has announced that an ex-support agent has been arrested by the Hyderabad police over a customer data leak that involved the theft of nearly 70,000 customer records. The breach highlights the importance of security and responsible practices in the cryptocurrency industry.
Coinbase faced a crisis involving the theft of nearly 70,000 customer records. The breach occurred in December 2024 and involved stolen personal data, including names, addresses, phone numbers, email addresses, and bank account information. Cybercriminals used the stolen data to trick users into handing over cryptocurrency, demanding $20 million from Coinbase. Instead of paying the ransom, Coinbase established a $20 million reward fund for information leading to the arrest and conviction of the attackers. The incident highlights the vulnerability of customer data and the importance of responsible practices in outsourcing customer support. Coinbase plans to improve its cybersecurity measures, including new security protocols and additional staff support. The cryptocurrency industry must take a proactive approach to cybersecurity, including investing in robust security measures and educating users about online security best practices.
Coinbase, a leading cryptocurrency exchange, has faced another crisis that highlights the importance of security and responsible practices in the industry. An ex-support agent, who was working for the US-based company at the time of the incident, has been arrested by the Hyderabad police in connection with the alleged theft of nearly 70,000 customer records. The breach, which occurred in December 2024, involved the theft of names, addresses, phone numbers, email addresses, images of government IDs, account data, masked SSNs, and bank account information.
According to Coinbase, the stolen information was used by cybercriminals to trick some users into handing over cryptocurrency while posing as Coinbase employees. The attackers reportedly demanded $20 million from the company in exchange for not releasing the stolen data publicly. However, instead of paying the ransom, Coinbase announced that it would be establishing a $20 million reward fund for information leading to the arrest and conviction of the attackers.
The incident is a wake-up call for cryptocurrency security, as it highlights the vulnerability of customer data and the importance of responsible practices in outsourcing customer support. Coinbase has been accused of having poor customer service in the past, with CNBC reporting that account takeover attacks on the platform were rampant in 2021.
The breach also raises questions about the effectiveness of cybersecurity measures and the need for greater transparency and cooperation between law enforcement agencies and cryptocurrency companies. The fact that the attackers used a combination of social engineering tactics and stolen credentials to gain access to customer accounts highlights the importance of educating users about online security best practices.
In response to the incident, Coinbase has announced plans to improve its cybersecurity measures, including the implementation of new security protocols and the hiring of additional staff to support its customers. The company has also emphasized its commitment to transparency and cooperation with law enforcement agencies, stating that it will work closely with authorities to investigate and prosecute those responsible for the breach.
While the arrest of the ex-support agent is a positive step in the investigation, it is clear that more needs to be done to prevent similar incidents from occurring in the future. The cryptocurrency industry must take a proactive approach to cybersecurity, including investing in robust security measures, educating users about online security best practices, and fostering greater cooperation between law enforcement agencies and companies.
In addition, Coinbase's decision to establish a reward fund for information leading to the arrest and conviction of the attackers is a welcome move. By incentivizing the public to come forward with information, Coinbase can help to identify those responsible for the breach and bring them to justice.
The incident also raises questions about the role of outsourcing customer support in cryptocurrency companies. While outsourcing may be cost-effective and allow companies to focus on core competencies, it also creates vulnerabilities that must be addressed through robust security measures and proper training of staff.
In conclusion, the arrest of the ex-support agent is a significant step towards holding those responsible for the breach accountable. However, more needs to be done to prevent similar incidents from occurring in the future. The cryptocurrency industry must take a proactive approach to cybersecurity, including investing in robust security measures, educating users about online security best practices, and fostering greater cooperation between law enforcement agencies and companies.
The establishment of a reward fund by Coinbase is a welcome move that can help to identify those responsible for the breach and bring them to justice. However, it is clear that more needs to be done to address the vulnerabilities created by outsourcing customer support in cryptocurrency companies.
Ultimately, the incident highlights the importance of security and responsible practices in the cryptocurrency industry. By taking a proactive approach to cybersecurity, investing in robust security measures, educating users about online security best practices, and fostering greater cooperation between law enforcement agencies and companies, the industry can help to prevent similar incidents from occurring in the future.
Related Information:
https://www.ethicalhackingnews.com/articles/Coinbase-Ex-Support-Agent-Arrested-Over-Customer-Data-Leak-A-Wake-Up-Call-for-Cryptocurrency-Security-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/12/29/indian_cops_cuff_coinbase_exrep/
Published: Mon Dec 29 15:23:19 2025 by llama3.2 3B Q4_K_M
