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May 16, 2025—San Francisco, CA— Coinbase, the cryptocurrency giant, confirmed a cyberattack this week. The attack could cause up to $400 million in damage. Hackers gained access by bribing foreign employees and contractors. These insiders allowed the attackers to steal customer information. The breach was discovered on May 11.
Coinbase stated that hackers stole customers’ names, addresses, and contact information. They also stole only partial Social Security numbers, banking IDs, and government-issued ID pictures. The hackers were unable to directly gain access to login credentials as well as private keys. However, they did use the stolen data to create an account on Coinbase. They convinced customers to transfer their cryptocurrency accounts.
Only one percent of Coinbase’s customers are affected However, the financial impact could be significant, as the possible costs could range between $180 million and $400 million for customer reimbursements and responses to incidents.
In a bold decision, Coinbase refused to pay the $20 million ransom requested by cybercriminals. Instead, Coinbase will offer a $20 million reward for information that could lead to the detention of the culprits. The employees and contractors involved were subsequently fired, and Coinbase is collaborating closely with authorities in law enforcement to pursue justice.
“We are taking this incident extremely seriously,” a Coinbase spokesperson said. “We’ve enhanced our internal security protocols and are committed to reimbursing any affected users.”
The announcement coincides with the cryptocurrency trading platform’s preparation to join the S&P 500 index. Coinbase shares dropped more than 7 percent following the announcement of the hack.
Coinbase is actively improving its infrastructure to boost security. It assures users of its commitment to maintaining trust. The company continues to cooperate with authorities as the investigation into the cyberattack progresses.
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