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NewsBTC 2025-05-19 22:47:31

Coinbase Confirms DOJ Investigation Following Major Security Incident

Coinbase Confirms DOJ Investigation Following Major Security Incident

The US Department of Justice (DOJ) has initiated an investigation into a significant security breach at Coinbase, the largest US-based cryptocurrency exchange. According to sources familiar with the matter cited by Bloomberg, the DOJ’s criminal division in Washington is examining the circumstances surrounding the breach, which has raised serious concerns about cybersecurity within the crypto sector. Coinbase Collaborates With DOJ Amid Major Data Breach Coinbase disclosed that the breach involved criminal actors bribing employees and contractors in India to gain access to sensitive client data. Paul Grewal, Chief Legal Officer of Coinbase, stated: We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement’s pursuit of criminal charges against these bad actors. Related Reading: Dogecoin On The Edge: Major Breakout Or Breakdown Imminent? Importantly, the exchange’s CLO clarified that while Coinbase itself is not under investigation, the DOJ is focused on the criminals involved in the breach. The incident first came to light when Coinbase received an email from an unidentified threat actor on May 11, claiming to possess information about certain customer accounts alongside internal documents. The company anticipates losses ranging from $180 million to $400 million due to the cyberattack. $20 Million Reward Fund After Rejecting Ransom While the attackers managed to steal some data, including names, addresses, and email addresses, the exchange confirmed that login credentials and passwords were not compromised. In a statement on May 15, Coinbase reassured its users via social media platform X (formerly Twitter) that it would not succumb to the attackers’ demands. The criminals had requested a ransom of $20 million. Related Reading: Pundit Says XRP Price Will Stabilize At $1,000 And Become ‘Very Expensive’ Instead of paying the ransom, Coinbase announced the establishment of a $20 million reward fund aimed at encouraging information leading to the arrest and conviction of those responsible for the attack. At the close of trading on Monday, the company’s stock (COIN) was trading at $263. Featured image from DALL-E, chart from TradingView.com

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