Coinbase Faces $400 Million Impact Following Insider-Linked Cyberattack

Coinbase has reportedly moved into damage control after a cyberattack that used insider help. The company is facing a possible $400 million impact and growing concerns about staff security in the crypto space.

According to the report, Coinbase got a message from someone unknown, claiming to have personal customer details and inside documents. The company explained that while names, addresses, and emails were taken, login details and passwords were not. It has also said that it will give money back to users who were tricked into sending funds.

Coinbase Faces Questions Over User Data As SEC Reopens Metrics Inquiry

Coinbase stated that the hackers have paid some workers and helpers outside the U.S. to collect user information. The company has made sure to remove those involved.

At the same time, people who know about the matter said the SEC has started asking if Coinbase gave the wrong user numbers. These people also shared that the SEC was looking into whether wrong numbers could show the company didn’t follow certain checks about knowing customers. This rule is expected of firms connected to the SEC.

Coinbase has replied that the SEC is not looking into those rules. A person close to the matter also said the SEC didn’t bring up those points directly and that they don’t seem to fit since a past case about registration was already dropped.

One person added that the question about how Coinbase counts users has stayed open, even after the other issue was dropped. A report from the New York Times has mentioned this earlier.

Coinbase Breach Sparks New Crypto Security Fears

Coinbase’s stock dropped after this update and lost about 6.5%. Paul Grewal, the company’s legal head, explained that the question is about an older way of counting users, which Coinbase stopped using a while ago. He said it was shared with the public and hopes the matter will soon end. He added that the company will keep working with the SEC.

This news came just before Coinbase was about to join a major group of top companies. This was supposed to be a proud moment for the crypto world, but the attack has created new concerns.

People in the crypto space still face safety problems, even though the market is getting more attention. A company called Bybit has earlier shared that it lost a large amount of digital coins during a break-in. This has been called one of the biggest crypto thefts.

An expert from U.S. Tiger Securities said this event might push companies to check their workers more carefully and may hurt reputations.

A group named Chainalysis reported that a large amount of money has been stolen from crypto companies during hacks.

The founder of a crypto firm named Zumo explained that as this space grows, more criminals are paying attention and their plans are getting more advanced.

Coinbase is also facing a case in New York, where it’s being said that the company didn’t protect user data well enough. The case speaks about the data of many users, both past and present.

Coinbase has said it won’t pay the $20 million ransom and is working with safety officials. Instead, it is offering that amount as a reward for help in finding those behind the attack.

The company also said it will open a new support center in the U.S. and take more steps to stop future problems.