Coinbase, the cryptocurrency trading platform, anticipates financial losses between $180 million and $400 million due to a recent cyberattack. The attack exposed personal information of some users. The company disclosed this information in a filing with the Securities and Exchange Commission.
On May 11, Coinbase received an email from an individual claiming to have acquired data linked to customer accounts and internal documents. The email demanded a ransom payment to prevent the release of the stolen information. Coinbase refused to pay the ransom and is cooperating with law enforcement in the investigation.
Coinbase co-founder and CEO Brian Armstrong revealed that the attackers demanded $20 million. The company declined and is now offering a $20 million reward for information leading to the arrest and prosecution of the hackers. Coinbase will compensate users who were tricked into transferring funds to the malicious actors.
The breach allowed hackers to access personal information, including names, addresses, phone numbers, and email addresses. They also obtained partially obscured Social Security numbers, masked bank account details, and images of official IDs. Coinbase confirmed that no account passwords or private keys were compromised.
Coinbase is actively working to mitigate the impact of the cyberattack and protect its users. The company is committed to ensuring the security of its platform and customer data. Further updates will be provided as the investigation progresses.
This article is based on our author's analysis of materials taken from Coinbase filings and announcements.