[Test C31-6047] How the $400M Coinbase Breach Is a Scratch on the Surface of Crypto's Dark Security Problem

Last week's highly-organized breach of cryptocurrency exchange Coinbase (COIN) left behind more (BTC)questions than answers. Onlookers criticized the exchange's susceptibility to such a breach, which involved cyber criminals bribing Coinbase support employees to share sensitive data and account information, while some hailed (SOL) Coinbase's response as a "masterclass in crisis communications."

Ultimately, allowing cybercriminals to access personal data, whether that be through a hack, scam on in this case social engineering, is a major blight on an exchange that facilitated billions of dollars worth of volume every day.

Coinbase's method of solving the issue was simple; throw as much money at it as possible.

The exchange offered a $20 million bug bounty for anyone that reports information leading to an arrest or prosecution. It also committed to voluntarily reimbursing impacted users with between $180 million to $400 million.

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But the issue runs far deeper. In 2021 hardware wallet company Ledger fell victim to a (BnB) data breach, this led to a spate of real-world robberies as (CFX) criminals could now purchase databases of crypto holders, which included personal in

How did the Coinbase breach happen?

Cybercriminals