- The breach was discovered on May 11, 2025, but occurred on December 26, 2024.
- Attackers caused $400 million in losses and attempted to extort Coinbase for $20 million.
- Coinbase is facing lawsuits from users over delayed breach notifications.
- The U.S. Department of Justice has launched an investigation into the incident.
Coinbase suffered a Cybersecurity breach that exposed personal information of nearly 70,000 users. The breach, which happened on December 26, 2024, was not discovered until May 11, 2025, according to a legal filing with the Maine Attorney General’s office.
The document states that 69,461 users had their data compromised, including names, contact details, and physical addresses. Among those affected, 217 users were residents of Maine. The incident led to $400 million in losses due to social engineering scams and costs related to corrective actions. Affected clients are now taking legal action against Coinbase, claiming the exchange failed to notify them quickly about the security issue.
According to the official filing, scammers convinced Coinbase customer service representatives to share user information. The attackers then demanded a $20 million ransom from the company, threatening to release the data if payment was not made. Coinbase did not negotiate with the criminals and instead dismissed the contractors involved. The exchange also promised to compensate affected users.
News of the breach caused Coinbase shares to fall by 7%. The incident has sparked new debates about the risks of Know Your Customer (KYC) data collection, as it can make crypto holders targets for scams.
The U.S. Department of Justice has opened a probe into the leak but had not released further updates as of May 21. Industry experts warn that data breaches could put crypto investors at increased risk of extortion, kidnapping, and other crimes. Notably, Roelof Botha, a partner at Sequoia Capital, was also reported as one of the victims.
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