The US Department of Justice (DOJ) has launched an investigation into a significant data breach at Coinbase, the largest US-based cryptocurrency exchange. According to Bloomberg on May 11, the DOJ's criminal division is examining the circumstances surrounding the breach, raising cybersecurity concerns within the crypto sector.
Coinbase disclosed that the breach involved bribed employees and contractors in India who provided access to sensitive client data. Coinbase's CLO, Paul Grewal, stated they are working with the DOJ and other law enforcement agencies to pursue criminal charges against the perpetrators.
The incident came to light when Coinbase received an email on May 11 from a threat actor claiming to possess information about customer accounts and internal documents. The company anticipates losses ranging from $180 million to $400 million due to the cyberattack. On May 15, Coinbase announced a $20 million reward fund to encourage information leading to the arrest of those responsible, after rejecting a $20 million ransom demand. At the close of trading on Monday, Coinbase stock (COIN) was trading at $263.
This article is based on our author's analysis of materials taken from the following resources: Bloomberg.