The big news in the crypto world today is that Coinbase has given the boot to some staff who were involved in a breach. They didn’t just fire them, though – they’re also planning to take legal action against them. Apparently, these employees were in cahoots with cyber criminals who managed to steal user data. The exchange is also offering a reward of $20 million to anyone who can help lead to an arrest in the case.
In a blog post, Coinbase disclosed that the cyber criminals were able to bribe and recruit a group of rogue support agents to help them with their nefarious activities. They even managed to trick some customers into sending funds to the attacker, which is pretty sneaky if you ask me. This revelation comes after some guy named ZachXBT claimed a few months ago that Coinbase users had lost a whopping $300 million to social engineering scams. Yikes!
According to Coinbase, the criminals were able to get their hands on government ID images, account balances, and corporate data. It’s a good thing that two-factor authentication codes and private keys weren’t compromised, though. The exchange wasted no time in firing the staff members involved in the breach and has already gotten law enforcement involved. They’re serious about pressing criminal charges against those responsible. It’s a tough situation all around, but hopefully, justice will be served.
Oliver Knight, the co-leader of CoinDesk’s data tokens and data team, has been keeping an eye on the situation. He used to be the chief reporter at Coin Rivet before joining CoinDesk in 2022. Oliver got into bitcoin way back in 2013 and even worked at a market making firm in the UK at one point. Despite his experience in the crypto world, he claims he doesn’t currently have any crypto holdings. I guess it goes to show that you don’t have to be personally invested in something to report on it.
Overall, the breach at Coinbase is a serious matter that has left many users feeling uneasy. It’s a reminder of the risks that come with trading and storing cryptocurrency online. Hopefully, the exchange’s efforts to track down the culprits and reimburse affected customers will help restore some faith in the platform. Only time will tell how this situation plays out, but one thing’s for sure – it’s a wake-up call for the entire industry.
