Coinbase, Inc. disclosed that personal data from 69,461 individuals was compromised in a December 2024 breach, according to a filing with the Maine Attorney General’s Office.
Details of the incident surfaced after the crypto exchange revealed last week that attackers demanded a $20 million bounty, threatening to release the stolen data on the dark web. Bad actors used cash incentives to bribe foreign-based customer support agents and extract system information.
Coinbase previously noted that the breach impacted less than 1% of its user base and included know-your-customer (KYC) details such as names, addresses, and emails. The company stated in a filing with the U.S. Securities and Exchange Commission that passwords, private keys, and user funds were not affected.
Following the reports, the SEC reportedly opened an official inquiry on whether Coinbase inflated its user metrics ahead of its 2021 initial public offering. Separately, the Department of Justice is investigating the breach, at Coinbase’s request, according to CEO Brian Armstrong.
Despite the regulatory pressure, analysts downplayed the incident, and Coinbase CLO Paul Grewal described the SEC’s probe as a “holdover investigation” from the prior administration.
KYC handicap
Meanwhile, Coinbase was criticized for its delayed response to the data breach. Michael Arrington, American founder and investor, said that the pilfered data could lead to mortal harm.
“It probably has already,” Arrington wrote on X. “The human cost, denominated in misery, is much larger than the $400m or so they think it will actually cost the company to reimburse people.”
Coinbase estimates the matter could cost around $180 million and $400 million in remediation and customer reimbursement expenses.
Arrington also condemned KYC laws as ineffective and dangerous, calling on both regulators and corporations to better protect user data.
“Combining these KYC laws with corporate profit maximization and lax laws on penalties for hacks like these means these issues will continue to happen. Both governments and corporations need to step up to stop this. As I said, the cost can only be measured in human suffering.”
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
