Indian police have arrested a former Coinbase customer service representative, marking the first arrest in the internal data breach case.
TL;DR
Indian police arrested a former Coinbase customer service rep in Hyderabad for a data breach involving 69,461 users. The breach, disclosed in May, led to $307 million in expenses and a shareholder lawsuit. Coinbase refused a $20 million extortion and set a bounty to catch the culprits.
ChainCatcher reports that Indian police have arrested a former Coinbase customer service representative in Hyderabad in connection with the data breach Coinbase disclosed in May. This is the first known arrest in the case. The news was confirmed by Coinbase CEO Brian Armstrong.
The incident dates back to December 2024. An investigation revealed that cybercriminals bribed overseas customer service personnel to gain access to internal systems and steal sensitive information from 69,461 users, including names, addresses, phone numbers, email addresses, and government-issued identity documents. Coinbase stated that the attackers attempted to extort $20 million, which the company refused to pay and instead established a bounty program of equal value to track down and apprehend those responsible.
In its Q2 earnings report, Coinbase disclosed that the incident has resulted in $307 million in related expenses, covering user compensation, legal fees, and security upgrade costs. Furthermore, Coinbase is currently facing a shareholder class-action lawsuit, accused of failing to disclose the incident in a timely manner and misleading investors. Coinbase stated that it will continue to cooperate with international law enforcement investigations, hinting at possible further arrests.