Michaela
Well-known crypto platform Coinbase has come under scrutiny after reports surfaced alleging the crypto exchange withheld details of a customer data breach since January, only disclosing the incident publicly months later.
According to Reuters, Coinbase was alerted earlier this year to a potential data breach involving a TaskUs employee—part of an outsourcing firm contracted by the exchange. The individual, based in India, was allegedly observed using a personal phone to photograph sensitive information displayed on her work computer.
Five former TaskUs employees stated that they were informed that the worker in question, along with a suspected accomplice, had allegedly sold Coinbase customer data to hackers in exchange for payment—a breach the crypto exchange was reportedly notified of right away.
Shortly after the breach, TaskUs carried out a mass layoff that affected more than 200 employees, prompting protests and attracting widespread media attention. Despite the scale of the layoffs, only two individuals were identified as the main suspects behind the data leak.
The crypto exchange reportedly severed ties with the TaskUs employees linked to the incident, along with several overseas contractors, while also implementing stricter security measures.
In mid-May, reports of the Coinbase data breach drew significant attention and raised concerns among users, as the crypto exchange has faced multiple security incidents in recent months.
Coinbase confirmed that the security breach compromised a range of sensitive customer data, including full names, contact details, partial Social Security numbers, limited bank account information, and images of government-issued identification such as driver’s licenses and passports.
The crypto exchange disclosed that the attackers behind the breach aimed to collect customer data in order to impersonate the platform and trick users into handing over their crypto assets. After carrying out the scheme, the individuals allegedly demanded $20 million from the company in exchange for silence. Coinbase rejected the demand.
The breach triggered a U.S. Department of Justice investigation into customer service contractors based in India who were working with Coinbase Global.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
