- Hackers stole customer data from Coinbase and demanded $20 million in Bitcoin for its return.
- Coinbase is working with U.S. law enforcement, including the Department of Justice, to investigate the incident.
- The company said no user funds, passwords, or private keys were compromised.
- CEO Brian Armstrong offered a $20 million bounty for information leading to the attackers’ arrest and conviction.
- Coinbase shares rose after being added to the S&P 500 index, despite a recent drop in daily trading.
Coinbase, the largest cryptocurrency exchange in the United States, confirmed it is assisting law enforcement after Hackers stole customer data and asked for $20 million worth of Bitcoin in return. The company said the incident happened last week and is under investigation by U.S. authorities, including the Department of Justice.
In a statement provided to Decrypt, Chief Legal Officer Paul Grewal said, “We have notified and are working with the DOJ and other U.S. and international law enforcement agencies, and welcome law enforcement’s pursuit of criminal charges against these bad actors.” The exchange announced that it received a letter from criminals who demanded the ransom. Instead of paying, CEO Brian Armstrong offered a $20 million reward for information leading to the conviction of the individuals involved.
Coinbase said the breach did not affect customer funds, passwords, or private keys. Armstrong posted a video on X explaining the company’s stance and encouraging the public to help catch those responsible by providing tips, linking to his post here.
The San Francisco-based company enables users to buy, sell, and invest in cryptocurrencies. Coinbase became a public company in 2021 and is listed on Nasdaq under the symbol COIN. Shares recently traded at $264, reflecting a daily loss but a 14% increase over the past five days after news of its addition to the S&P 500 index.
No further details on the investigation or specific data compromised were made available. The Department of Justice has not yet provided further comment on the case.
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