Coinbase Estimates Data Breach Costs at $180-$400 Million

By Netvora Tech News

---

Coinbase, a leading cryptocurrency exchange, estimates that the costs of a recent data breach will range between $180 million and $400 million. The breach occurred when former employees, allegedly involved in the incident, shared customer data with criminals. In a filing with the US Securities and Exchange Commission (SEC), Coinbase provided more details about the incident.

Data Breach Details Revealed

The stolen customer data, including copies of passports, driver's licenses, and identity cards, was used to defraud customers and extort Coinbase. The attackers demanded $20 million from the company, according to Coinbase's own statement.

As a result of the breach, Coinbase will compensate customers who were affected. Although the company did not provide a specific number of victims, it stated that fewer than 1% of its monthly active users were impacted.

Costs of the Breach

Based on available information, Coinbase estimates that the costs of the breach will range between $180 million and $400 million. This includes compensation for affected customers and restoration costs. Other potential costs, such as potential damage claims, are not included in this estimate.

The investigation into the breach is ongoing, and the full extent of the impact is still unknown.

Conclusion

Coinbase's data breach underscores the importance of robust security measures in the cryptocurrency sector. As the company continues to investigate and address the incident, it is crucial that customers remain vigilant and take steps to protect their personal information.