Coinbase, America’s largest cryptocurrency exchange, received an unsolicited email from an unknown threat actor on May 11, 2025. They claimed to possess sensitive information about its customers and demanded a ransom of $20 million. By Dilip Kumar Patairya.
In May 2025, Coinbase was breached via an unsolicited email alleging possession of customer data. Attackers recruited overseas Indian customer service agents to exfiltrate sensitive information gradually. A 20M ransom demand on May 11 led to increased scrutiny. By May 21,attackers transferred 42.5M between Bitcoin and Ethereum using THORChain.
Coinbase’s comprehensive response included:
- A $20M reward fund for actionable intelligence leading to arrests
- Full reimbursement commitments (up to $400M in estimated costs) paired with one-year credit monitoring and identity restoration services
- Enhanced account security requiring multi-factor verification for large withdrawals, coupled with scam-awareness prompts
- Expansion of a U.S.-based support hub fortified with rigorous security protocols across all operations
- Transparent collaboration with federal and international law enforcement, culminating in internal terminations and criminal referrals of involved insiders
Coinbase’s internal security team detected anomalies, terminated complicit employees, and publicly denied the ransom in an SEC filing. The breach impacted 69,461 accounts, exposing names, emails, masked financial identifiers, and transaction histories—but not private keys or wallet access. In the wake of large-scale data breaches of crypto platforms, you should take proactive steps to protect yourself from social engineering attacks - read article for a good advice on this last point. Interesting read!
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