One of the world’s largest cryptocurrencies exchanges, coinbase is hit by a large cyber attack. The company said in information given to the US Security and Exchange Commission (SEC) that due to this attack it could lose from $ 180 million to $ 400 million. The attack was not only economically large, but the personal information of users has also been leaked in it. It is worth noting that earlier also the news of hacks of many exchanges in the crypto market had been in the news, in which Wazirx Hack and Bybit Hack were in more headlines.
Reply to ransom demand and coinbase
According to Coinbase, on May 11 he received an email, in which the sender claimed that he had data related to some users’ accounts and internal documents of the company. This email had a ransom of $ 20 million, so that he would not leak the data publicly. However, Coinbase made it clear that they have refused to accept the demand and are investigating the case in collaboration with law enforcement agencies.
How Coinbase Hack, Know how access to internal system
According to Coinbase’s blog post, this attack was done not by any external hacker, but by bribing support agents sitting abroad. These agents misused their access and reached the users’ data and stole sensitive information related to the account of some customers. These included names, addresses, emails, phone numbers, bank details, social security numbers (up to 4 digits) and images of identity cards.
Coinbase also clarified that no customer passwords, private or funds have been damaged and coinbase high accounts are completely secure. Significantly, this incident has happened when Coinbase recently achieved a major achievement. Where The first crypto firm to join Coinbase S&P 500 was made,
Users compensation and new security measures
Coinbase has promised that the company will give compensation to users who were fraudulently provoked to transfer funds. The company has already fired employees who were involved in this attack, as well as strengthening fraud detection and security protocols. The company is constantly giving information to the affected users and implementing new measures to protect against attacks like social engineering.
$ 20 million reward and forward strategy
Coinbase has adopted an aggressive strategy along with deciding not to give ransom. The company has declared a reward of $ 20 million for any person who will help in the identity, arrest and punishment of criminals responsible behind this cyber attack. CEO Brian Armstrong said in a video message that the company is not in the mood to spare criminals and is taking all possible steps for legal action.
Conclusion
This cyber attack showed how important cyber security is for digital financial institutions. This incident is a warning for large platforms such as coinbase that even a large -scale data can be leaked through internal personnel. However, the company’s quick response, ransom refusal, promise of compensation to users and a $ 20M reward against criminals proves that it is taking its responsibility seriously. Now everyone’s eyes are on coinbase’s next security strategies and law enforcement action.
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