Indian authorities have arrested a former Coinbase customer support agent in Hyderabad in reference to the crypto change’s information breach disclosed earlier this yr, in accordance with Coinbase CEO Brian Armstrong.
Key Takeaways:
- A former Coinbase help agent was arrested in India over a knowledge breach affecting almost 70,000 customers.
- Coinbase rejected a $20M ransom and incurred $307M in breach-related prices.
- The incident provides to mounting authorized and safety strain on the change.
“We’ve got zero tolerance for dangerous habits and can proceed to work with legislation enforcement to carry dangerous actors to justice,” Armstrong stated in a put up on X on Thursday. “One other one down and extra nonetheless to come back.”
The breach, which Coinbase stated started in December 2024, stemmed from a bribery scheme concentrating on offshore buyer help workers.
Coinbase Breach Uncovered Knowledge of Practically 70,000 Customers
Cybercriminals allegedly paid customer support brokers to entry inside programs and extract delicate person info, together with names, addresses, telephone numbers and government-issued identification.
Coinbase disclosed in a submitting with the Maine Lawyer Common’s Workplace that 69,461 customers have been affected.
The attackers later demanded a $20 million ransom, which Coinbase refused to pay. As a substitute, the corporate launched an identical bounty program, providing rewards for info that might result in arrests and asset restoration.
A subsequent investigation by Fortune linked the incident to buyer help brokers working for TaskUs, a Texas-based enterprise course of outsourcing agency with operations in India.
TaskUs stated it had recognized two staff who have been allegedly recruited as a part of a broader legal marketing campaign that additionally focused different service suppliers supporting Coinbase.
We’ve got zero tolerance for dangerous habits and can proceed to work with legislation enforcement to carry dangerous actors to justice.
Because of the Hyderabad Police in India, an ex-Coinbase customer support agent was simply arrested. One other one down and extra nonetheless to come back.— Brian Armstrong (@brian_armstrong) December 26, 2025
Coinbase reported $307 million in breach-related prices in its second-quarter earnings, protecting remediation efforts and reimbursements to affected prospects.
The corporate can also be dealing with a shareholder class motion lawsuit, which alleges that Coinbase didn’t disclose the breach in a well timed method.
The arrest in India comes simply days after US prosecutors charged a Brooklyn resident with working a separate phishing scheme that allegedly stole $16 million from roughly 100 Coinbase customers.
Blockchain investigator ZachXBT performed a task in figuring out the suspect.
Coinbase shares slipped about 1.2% to $236.90 on Friday. Indian legislation enforcement has not issued a public assertion on the arrest.
Brooklyn Man Charged in $16M Crypto Rip-off Concentrating on Coinbase Customers
As reported, US prosecutors have charged a 23-year-old Brooklyn resident, Ronald Spektor, with stealing roughly $16 million in cryptocurrency from round 100 Coinbase customers by means of an alleged phishing and social engineering scheme.
Based on the Brooklyn District Lawyer’s Workplace, Spektor posed as a Coinbase worker and contacted victims claiming their funds have been at quick danger, pressuring them to switch crypto to wallets he managed.
Authorities stated the scheme relied on panic techniques quite than technical hacks. Working beneath the net alias “lolimfeelingevil,” Spektor allegedly warned victims of imminent theft to override skepticism and drive fast choices.
As soon as funds have been transferred, prosecutors say he tried to cover their origin by routing belongings by means of crypto mixers, token swaps and on-line playing platforms.
Spektor was arraigned on 31 costs, together with first-degree grand larceny and cash laundering, following a year-long investigation.
Regulation enforcement has seized about $105,000 in money and $400,000 in digital belongings to date, with efforts ongoing to get better extra funds.
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