Key Takeaways:
- DOJ is investigating a Coinbase data breach involving bribed Indian contractors who leaked user information.
- The breach led to social engineering attacks and an alleged $20M extortion attempt, with up to $400M in losses.
- Users have filed lawsuits claiming mishandling of data, and Coinbase faces separate scrutiny from the SEC.
The U.S. Department of Justice (DOJ) is investigating a data breach at Coinbase involving insider bribery and social engineering attacks.
The breach, disclosed on May 15, allegedly involved customer service agents in India who accepted bribes to grant unauthorized access to user data.
The US Justice Department has opened a probe into a recent breach at the leading cryptocurrency exchange Coinbase https://t.co/7v7GgZTklm
— Bloomberg (@business) May 19, 2025
These contractors have since been terminated.
Coinbase stated that no passwords, private keys, or funds were exposed, but the compromised data enabled targeted scams, including one affecting a Sequoia Capital partner.
Estimated losses have reached up to $400 million.
The attackers also attempted to extort $20 million from Coinbase to keep the breach secret—a demand the company refused.
The breach has led to multiple lawsuits, including one from Ed Suman, a retired artist, who claims he lost $2 million due to the scam.
Coinbase’s stock experienced volatility following the incident and amid a separate SEC investigation into its user verification metrics.
While Coinbase has confirmed its cooperation with the DOJ and other authorities, it has not issued further public comments.
The case highlights serious concerns about data security, third-party contractors, and Coinbase’s internal oversight.
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