Crypto Alternate Coinbase appears to be trapped in a large cyber scandal. Where in the case, now US Branch of Justice (Doj) has been entered. The US Department of Justice (Doj) is now investigating against some employees of Coinbase’s Indian Buyer Carrier Company, who allegedly took bribe and allowed cyber criminals to reach the personal information of users. Due to which the incident of coinbase hack took place.
What is the matter?
According to a report published by Bloomberg on 19 May, Doj is investigating this data breech, which was made public by Coinbase on 15 May. According to the report, the customer service agents working on some contracts of Coinbase stole the user data using their access misuses. These agents have now been expelled from the company.
Coinbase Chief Legal Officer, Paul Grawall, said that the company has informed the Doj and other US and international investigative agencies about the incident and would welcome criminal action against the culprits.
How big is the loss?
Although the company says that “no password, private or fund exposes”, many users were victims of social engineering attachments due to this data breech. Recently released Coinbase Hack Replace It has been said that many high-profile people, including partners of a major venture firm Sequoia Capital, were hit by this attack.
These attacks are estimated to have a loss of up to $ 400 million (about ₹ 3,300 crore). Not only this, the attackers also sought a ransom of $ 20 million from Coinbase, in return they threatened not to leak the data. However, Coinbase turned down the demand.
Users’ displeasure and legal action
Many coinbase customers are now sueing the company due to data breech and social engineering attachments. Users allege that the company was negligent in protecting their personal information. In one case, a retired artist named Ed Suman claimed to lose $ 2 million (more than ₹ 16.5 crore).
More pressure on coinbase
Along with the news of this data breech, Coinbase is already facing another investigation by US Securities and Alternate Fee (SEC). SEC is also reviewing the “Verified User” data reported by Coinbase.
Due to these incidents, the price of coinbase shares has also seen fluctuations.
Conclusion
This type of data on a large and prestigious crypto exchange like Coinbase is not only a matter of concern for its users, but also a warning for the entire web3 and crypto industry. Now DOJ examined can lead to more shocking revelations in the coming time.
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