Coinbase said a group of rogue contractors were bribed to pull customer data from internal systems, leading to a $20 million ransom demand.
May 15, 2025 By Ryan Naraine
Coinbase on Thursday laid out the full scope of a security breach first disclosed to the SEC, confirming that a group of rogue contractors were bribed to pull customer data from internal systems and then demand a $20 million payoff.
Coinbase chief executive Brian Armstrong said the cryptocurrency exchange “won’t fund criminal activity” and is instead setting up a $20 million reward fund for information that leads to the arrest and conviction of the extortionists.
In a filing with the Security and Exchanges Commission, Coinbase said criminals made contact May 11 claiming to possess data on “less than one percent” of monthly transacting users along with internal customer-support documentation.
