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 involvement in a May data breach, the first arrest in the case. The breach involved cybercriminals bribing staff to steal data from 69,461 users, leading to $307 million in expenses and a shareholder lawsuit.
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On December 29, Indian police arrested a former Coinbase customer service representative in Hyderabad, suspected of involvement in the internal data breach that Coinbase disclosed in May of this year. 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 the internal system 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 launched a bounty program of the same amount to track down and apprehend those responsible. Coinbase disclosed in its Q2 earnings report 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 agencies in their investigation, hinting at possible further arrests.