Coinbase, the leading cryptocurrency exchange in the US, has announced that a recent cyber-attack compromising a limited number of customer accounts could result in financial losses ranging from $180 million to $400 million. This estimate excludes a $20 million ransom that the company has opted not to pay. The hackers were able to access some personal data such as names, addresses, and email addresses, but they did not obtain any login credentials or passwords. Coinbase has pledged to reimburse customers who inadvertently transferred funds to the attackers.
The attackers reportedly employed contractors and employees in support roles outside the US to extract information from Coinbase’s internal systems, leading to the dismissal of those involved. In response to the attack, Coinbase has chosen to work closely with law enforcement and has set aside a $20 million reward for information leading to the apprehension of the perpetrators.
In a blog post, Coinbase stated, “Instead of funding criminal activity, we have investigated the incident, strengthened our controls, and will reimburse customers affected by this incident.” The breach was first highlighted by an email from an unidentified threat actor on May 11, who claimed to possess information on specific customer accounts and internal documents. This incident comes just before Coinbase is slated to join the prestigious S&P 500 index, a significant milestone for the cryptocurrency sector.
Security issues continue to pose challenges within the cryptocurrency industry. Earlier this year, Bybit, ranked as the second-largest cryptocurrency exchange based on trading volume, disclosed a major attack that resulted in the theft of digital tokens valued at approximately $1.5 billion—the largest heist in cryptocurrency history.
According to Chainalysis, a blockchain analysis firm, hacking incidents targeting cryptocurrency platforms resulted in losses of around $2.2 billion in 2024, marking the fourth consecutive year in which such hacks exceeded $1 billion. The recurring nature of these breaches highlights the ongoing vulnerabilities associated with digital currencies and the need for enhanced security measures across the industry.