"Coinbase Data Breach: 70,000 Users Affected, Leak Unnoticed for 6 Months"

# Coinbase Data Breach Affects 70,000 Users, Firm Takes Six Months to Identify Incident The U.S. Department of Justice (DOJ) has unveiled details about a major data breach at the cryptocurrency exchange, Coinbase. According to a report by Cointelegraph on October 21, around 70,000 customers were affected by the breach, which went undetected by Coinbase for six months. Documents from the law firm Latham & Watkins reveal that the breach occurred on December 26 last year and was only discovered by Coinbase in May this year. # Hackers Targeted Insider Access The breach began when hackers bribed a customer support employee to infiltrate Coinbase's internal systems. They accessed sensitive customer information, including names, addresses, phone numbers, email addresses, and account details. The attackers then demanded $20 million from Coinbase, equivalent to approximately 27.5 billion Korean won. # Coinbase Faces Criticism for Response In the aftermath, Coinbase severed ties with the external contractor involved and proposed compensation for affected customers. However, the company has been criticized for not disclosing the breach promptly, leading to several class-action lawsuits. # Financial and Market Consequences The incident has significantly impacted Coinbase’s financial health and market standing. Following the breach’s revelation, the company's stock price fell by 7%. Additionally, Coinbase reported that losses related to the cyberattack and recovery efforts are around $400 million. As investigations and legal proceedings progress, the breach highlights the urgent need for robust cybersecurity measures and timely incident reporting in the cryptocurrency industry.