Coinbase, one of Crypto’s most important names, is dealing with a serious disaster. A recent cyber attack was addressed to the company’s internal systems through a combination of deception and internal manipulation. Coinbase’s trick was not another phishing attempt. They involved experts, stolen data and a possible consequence of $ 400 million. Now, the consequences could cost the exchange of $ 180 million to $ 400 million, and that is before we stop at reputation damage.
The attack began with a single email
It all started on May 11, when Coinbase received an email from someone who states that they stole customer data. But this was not your usual phishing scam. According to the company, the attackers pay a handful of contractors and employees to obtain access to internal tools and information. From there, they used that access to the undergraduate staff of Coinbase and deceive users in the delivery of their cryptography.
Rip
News: Coinbase Hack – The problem is KYC. The more we are KYC, the more at risk the user is. pic.twitter.com/sn2eqkjqwi
– Jason ai. Williams (@orfingparabolic) May 15, 2025
Only a small portion of users, less than 1 percent, was affected. But considering that Coinbase has millions of clients, even that small group could add great financial success.
A rescue application for $ 20 million? Declined
Once the attackers had what they wanted, they returned with a lawsuit. They asked Coinbase to pay $ 20 million to prevent stolen data from being released. Coinbase did not shuddered. The company refused to pay and was made public with the Insead incident.
The CEO of Coinbase has rejected a $ 20 million rescue demand
Then he placed a $ 20 million reward to find the cybercriminals behind him. pic.twitter.com/levp3stxk7
– Dexerto (@dexerto) May 15, 2025
They have promised to reimburse affected customers and already have tasks of disciplinary action internally. Any employee who helped filter customer information has been allowed to go. And to take another step, Coinbase has established a $ 20 million reward fund for anyone who can help take the attackers to justice.
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How much could this cost?
In a filming to US regulators, Coinbase estimated that the damage could range between $ 180 million and $ 400 million. That number includes the cost of fixing the violation, reimbursement of users and any legal consequence that you can follow. It could go up or down depending on what happens later, especially if funds are recovered or if more losses are discovered.
Investors did not take the news lightly. Coinbase’s actions fell approximately 4 percent after the story became public.
This is not just a coinbase problem
The cryptographic space has had a difficult time with security lately. According to Chainysis data, computer pirates obtained more than $ 2 billion in stolen funds only in 2024. And as the industry grows, so do the objectives. It is not surprising that the attackers become more creative and pursue the largest fish.
This is not the first time that an important platform faces an internal threat or a Phishing scheme. But the coinbase situation shows how complex and expensive these attacks are becoming, even for well -established companies.
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What coinbase users should know
Coinbase urges users to stay alert. The company is braking everyone so that it will never request passwords, codes of two factors or requests to send crypt somewhere. If something feels off, users are advised to block their accounts and report immediately.
Coinbase Hack: A hard lesson for industry
With the coinbase trick, we are seeing how larger cryptographic platforms can be vulnerable from inside out. This is a clear sign that cryptographic platforms, regardless of how large, need to stay sharp. And for users, it is another reason to be more cautious. In a space where trust can be fragile, a violation like this can spread far beyond people directly involved.
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Coinbase faces losses between $ 180 million and $ 400 million after a cyber attack led by privileged information compromised its internal systems.
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The attackers allegedly bribe the contractors and employees to obtain internal access, then imposed the Coinbase staff to deceive users to deliver the cryptography.
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Coinbase refused to pay a ransom of $ 20 million and has been made public, promising to reimburse affected users and investigate the violation.
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The company has a fire involved in the scam and launched a $ 20 million rewards fund to locate those responsible for the attack.
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The hack highlights the growing cyber security threats throughout the cryptographic industry, where even first level platforms are vulnerable to internal manipulation.
The post coinbase pirate: up to $ 400 million at risk after the internal scam first appeared in 99Bitcoins.