Latest news with #PaulGrewal
Business Mayor
22-05-2025
- Business
- Business Mayor
Major crypto platform hit by ‘$400m' cyber attack with customers issued danger warning
The world's third-largest cryptocurrency exchange was hit with a cyber attack that could cost it $400million in reimbursement expenses. Coinbase revealed last week that it received a threatening email on May 11 claiming to have information on some customer accounts and company documents. The hackers managed to collect the sensitive data by paying several employees and contractors outside of the US. Coinbase said that all of the involved workers have been fired. Hackers stole customers' names, emails and addresses, but did not access their login information or passwords, according to Coinbase. Coinbase plans to reimburse all of its customers who were tricked into sending money to the actors. The total is estimated to be between $180million and $400million. On Monday, Coinbase's chief legal officer, Paul Grewal, said they notified the US Department of Justice and other international law enforcement agencies and 'welcome law enforcement's pursuit of criminal charges against these bad actors'. Coinbase has declined to pay the $20million ransom and is instead working with the law enforcement agencies and offering a $20million reward for information on the culprits. The hack happened days before Coinbase was expected to join the S&P 500 index. Arrington Capital and TechCrunch founder Michael Arrington said he is a longtime investor and champion of Coinbase, but is disappointed in the company using the 'cheapest option for customer service'. He opined that the breach 'will lead to people dying'. 'It probably has already. The human cost, denominated in misery, is much larger than the $400m or so they think it will actually cost the company to reimburse people,' wrote Arrington on X (formerly Twitter) on Monday. 'The consequences to companies who do not adequately protect their customer information should include, without limitation, prison time for executives.' It happened only a few months after North Korean hackers executed what is considered the biggest crypto heist in history, stealing $1.5billion inEthereum tokens from ByBit. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Trump's favorite food and desserts revealed on Take Your Child to Work Day MORE: Urgent recall issued for popular ice cream brand over plastic contamination fears MORE: Family 'find wrong man in loved one's casket wearing his suit' Stay on top of the headlines with daily email updates. READ SOURCE
Yahoo
22-05-2025
- Business
- Yahoo
Coinbase hack reveals crypto vulnerability to old-school crime: Bribery
Coinbase Global (COIN) often touts how it is "building the financial system of the future," but last week the cryptocurrency exchange made a disclosure that highlighted how vulnerable it was to a very old-fashioned form of crime: bribery. Cyberattackers accessed names, addresses, government-ID imagery, transaction history, and account balances of customers comprising less than 1% of its monthly transacting users, Coinbase said, and demanded a ransom payment of $20 million. How did criminals get this information? By bribing retail customer service agents in India, according to the company. The data breach disclosure interrupted what should have been a crowning moment for Coinbase as it joined the S&P 500 (^GSPC) following a landmark acquisition of crypto options exchange Deribit for $2.9 billion. Bloomberg reported Monday that the Justice Department is now investigating the hack. Paul Grewal, the company's chief legal officer, told Bloomberg that Coinbase brought the matter to the attention of the DOJ and that the company itself is not being investigated. Coinbase's stock fell 7% on the day of the announcement. It has since recovered and is down roughly 1% from its closing price the day before it revealed the breach. Devin Ryan, head of financial technology research at Citizens Financial Group (CFG), doesn't view the breach as "as some fundamental inherent issue with the company, but more a lapse that they have to now take the consequences of and hopefully learn from." "This is an issue that emanated from employees and also, I think, from a process," Ryan added. As far back as December 26, 2024, the criminals began pilfering the names and addresses of Coinbase customers, according to a Wednesday filing with the Maine Attorney General. Some 69,461 affected people are now at higher risk of identity theft or fraud, according to the filing. The company immediately fired workers who were inappropriately viewing customer data, enhanced fraud protections, and notified customers as far back as December, according to a SEC filing. Coinbase CEO Brian Armstrong last week posted a video on X addressing the breach, explaining that instead of paying the ransom, Coinbase is establishing a $20 million reward or bounty program for information leading to the arrest and conviction of the attackers. He also said the company has alerted affected customers and is planning to reimburse those affected and relocate some of its support operations. "No, we're not going to pay your ransom," Armstrong said, addressing the attackers during the video. A preliminary estimate of the incident's cost is "approximately $180 million to $400 million," Coinbase said in a SEC filing. Inside the crypto world, there is concern that large account holders could become targets of physical attacks. Reports of attacks generally targeting crypto figures have been surging so far this year. One public database created by Jameson Lopp, co-founder and chief security officer of bitcoin security provider Casa, shows 23 physical attacks against crypto-holding people and companies worldwide so far this year. Though not every physical attack is reported, that figure is nearly three times the number reported in the same period last year. It's also by far the highest number on record since the database began tracking such incidents in December 2014, when bitcoin was much less popular and valuable. Three of this year's attacks have been attempted abductions of crypto executives or their relatives in France, including two where victims lost a finger as their abductors sought both ransom and access to their crypto wallets. Bloomberg has reported that one prominent Coinbase customer has already been fooled into handing over money, citing a Los Angeles artist who told the news outlet he lost $2 million. Coinbase's two biggest rivals — Binance and US-based Kraken — have faced similar "social engineering" attacks, but both fended off data breaches from similar attacks, according to Bloomberg. "Although Coinbase may be world-leading when it comes to giving people access to crypto, I think there are many aspects of their business practice that are likely based on the practices of more traditional organizations,' Evin McMullen, co-founder of AI-powered digital identity project Privado ID, told Yahoo Finance. Armstrong provided more detail about his thoughts on the incident this week as he responded on X to a post from TechCrunch founder and self-proclaimed Coinbase investor Michael Arrington, who claimed the data breach "will lead to people dying." "The data hasn't been dumped on the dark web yet. We will see if that holds," Armstrong said as part of a lengthy response to Arrington on Tuesday. The CEO also expressed doubt that using overseas customer service workers was to blame. "The location of support agents I don't think is a perfect solve to this, since the amounts they were offering were powerful even for people in parts of the U.S. But it's possible it could help on the margin," he added. A Coinbase spokesperson said that, to her knowledge, Armstrong's comments still hold. David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
20-05-2025
- Business
- USA Today
Hackers bribed overseas Coinbase agents for customer information. How to protect yourself.
Hackers bribed overseas Coinbase agents for customer information. How to protect yourself. Show Caption Hide Caption Bitcoin, Ethereum, Dogecoin: What to know before investing in crypto From Dogecoin to Bitcoin to Coinbase, cryptocurrency is the hottest trend in investing right now. Here's what you need to know before buying in. USA TODAY A data breach affecting Coinbase, the world's largest cryptocurrency exchange, has left some customers' data vulnerable. The U.S. Department of Justice reportedly launched a probe into the attack. Cyber criminals bribed a group of 'rogue' overseas support agents to facilitate the breach, according to the company. The company said it received an email from an unknown actor on May 11 who claimed to have access to some internal documents and information about certain customer accounts. Coinbase refused to pay their ransom demand of $20 million and is instead offering a $20 million reward for information about the hackers. "We have notified and are working with the DOJ and other U.S. and international law enforcement agencies and welcome law enforcement's pursuit of criminal charges against these bad actors," Coinbase's Chief Legal Officer Paul Grewal told Reuters. Coinbase said the hackers did not gain access to login credentials or passwords, but they did steal other customer data. The company said it will install extra safeguards and reimburse customers who were tricked into sending money to the attackers. In addition, it is opening a new support hub in the U.S. The company's share prices took a dive when Coinbase forecast a hit of $180 million to $400 million after the attack. If you are one of the millions of American Coinbase customers, here's what to know about the breach and how to protect yourself: More: Landmark cryptocurrency bill blocked over concerns about Trump's connections What did the Coinbase hackers get? According to the crypto exchange, the attackers gained access to the following information from a subset of its customers in the breach: Name, address, phone, and email Last four digits of their social security numbers Masked bank-account numbers and some bank account identifiers Government-ID images Account data, such as balance snapshots and transaction history Coinbase said the attackers do not have access to: Login credentials or two factor authentication codes Private keys Any ability to move or access customer funds Coinbase Prime accounts Any Coinbase or Coinbase customer hot or cold wallets How can Coinbase customers protect themselves after the breach? The company said it sent out an email notifying affected customers on May 15 and will reimburse those who mistakenly sent funds to a scammer as a direct result of the breach prior to that day after a review of the incident. Coinbase customers should be on high alert for scammers trying to retrieve more information or money after the breach. 'Expect imposters. Scammers—related to this incident or not—may pose as Coinbase employees and try to pressure you into moving your funds,' Coinbase said in a statement. 'We will never call or text you to give you a new seed phrase or wallet address to move your funds to. If you receive this call, hang up the phone.' In addition, the company recommends turning on withdrawal allow-listing, which only permits transfers to wallets you are confident you fully control. It also suggests enabling strong two factor authentication. If something feels off, Coinbase advises you lock your account and email security@ Are other crypto exchanges at risk While this breach did not affect other crypto exchanges, they have also been subject to cyber attacks and cryptocurrency customers are generally common targets for scammers. Funds stolen by hacking crypto platforms increased 21% and totaled $2.2 billion in 2024, a Chainalysis report found. Other crypto exchange platforms including Robinhood and Cash App have fallen victim in the past to cyberattacks that exposed millions of users' data. While the industry has become more mainstream over the years, Coinbase acknowledged that widespread adoption of cryptocurrency will depend on trust. Contributing: Reuters Reach Rachel Barber at rbarber@ and follow her on X @rachelbarber_
Yahoo
19-05-2025
- Business
- Yahoo
Coinbase's Customer Data Theft Is Being Investigated by DOJ
(Bloomberg) — The US Justice Department has opened a probe into a recent breach at the leading cryptocurrency exchange Coinbase Global Inc., according to a person familiar with the matter. America, 'Nation of Porches' NJ Transit Train Engineers Strike, Disrupting Travel to NYC NYC Commuters Brace for Chaos as NJ Transit Strike Looms NJ Transit Makes Deal With Engineers, Ending Three-Day Strike Investigators, including those in the department's criminal division in Washington, are digging into the circumstances surrounding the breach, said the person, who asked not to be identified discussing the investigation. Coinbase has said the hack involved criminals bribing employees and contractors in India to obtain client data. A representative for the Justice Department declined to comment. Coinbase brought the incident to the attention of authorities and the company itself is not under DOJ investigation, said Paul Grewal, the company's chief legal officer. '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,' Grewal said. UK and Irish data regulators said they are 'assessing' the situation after receiving reports from Coinbase. The largest US crypto exchange disclosed on Thursday that hackers bribed customer representatives to steal the data and then asked for $20 million in ransom to cover it up. Coinbase said in the filing that it received an anonymous email from the hackers making the ransom demand on May 11. In its filing last week, Coinbase added that in the months leading up to that email it had detected instances of customer support agents outside of the US collecting data from internal Coinbase systems. Those people have been fired, Coinbase said. The company estimated the incident could cost the firm as much as $400 million to remedy. The perpetrators deployed what's called social engineering attacks — where criminals use people to gain unauthorized access to data, rather than exploiting flaws in computer code. The thieves, armed with information that included users' names, addresses, phone numbers, government-issued ID images and other information, aimed the social-engineering attacks directly at Coinbase's customers. (Adds further comment from company's lawyer in fourth paragraph and background throughout.) Why Apple Still Hasn't Cracked AI Microsoft's CEO on How AI Will Remake Every Company, Including His Anthropic Is Trying to Win the AI Race Without Losing Its Soul Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race ©2025 Bloomberg L.P.
Yahoo
19-05-2025
- Business
- Yahoo
Coinbase's Customer Data Theft Is Being Investigated by DOJ
(Bloomberg) -- The US Justice Department has opened a probe into a recent breach at the leading cryptocurrency exchange Coinbase Global Inc., according to a person familiar with the matter. America, 'Nation of Porches' NJ Transit Train Engineers Strike, Disrupting Travel to NYC NYC Commuters Brace for Chaos as NJ Transit Strike Looms NJ Transit Makes Deal With Engineers, Ending Three-Day Strike Investigators, including those in the department's criminal division in Washington, are digging into the circumstances surrounding the breach, said the person, who asked not to be identified discussing the investigation. Coinbase has said the hack involved criminals bribing employees and contractors in India to obtain client data. A representative for the Justice Department declined to comment. Coinbase brought the incident to the attention of authorities and the company itself is not under DOJ investigation, said Paul Grewal, the company's chief legal officer. '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,' Grewal said. UK and Irish data regulators said they are 'assessing' the situation after receiving reports from Coinbase. The largest US crypto exchange disclosed on Thursday that hackers bribed customer representatives to steal the data and then asked for $20 million in ransom to cover it up. Coinbase said in the filing that it received an anonymous email from the hackers making the ransom demand on May 11. In its filing last week, Coinbase added that in the months leading up to that email it had detected instances of customer support agents outside of the US collecting data from internal Coinbase systems. Those people have been fired, Coinbase said. The company estimated the incident could cost the firm as much as $400 million to remedy. The perpetrators deployed what's called social engineering attacks — where criminals use people to gain unauthorized access to data, rather than exploiting flaws in computer code. The thieves, armed with information that included users' names, addresses, phone numbers, government-issued ID images and other information, aimed the social-engineering attacks directly at Coinbase's customers. (Adds further comment from company's lawyer in fourth paragraph and background throughout.) Why Apple Still Hasn't Cracked AI Microsoft's CEO on How AI Will Remake Every Company, Including His Anthropic Is Trying to Win the AI Race Without Losing Its Soul Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
