Coinbase Tightens Security as North Korean Hackers Exploit Remote Policies

• Coinbase enhances security protocols after vulnerabilities in remote work policies were targeted by hackers.
• Measures include U.S. citizenship, fingerprinting, and mandatory in-person training for sensitive roles.

Coinbase, the third-largest cryptocurrency exchange, has revamped its security protocols after North Korean hackers exploited gaps in its remote work setup to breach its systems. On August 22, 2025, Cointelegraph reported that CEO Brian Armstrong unveiled the new measures to counter the growing threat posed by cyberattacks against the crypto sector.

The updated security measures require employees handling sensitive company data to hold U.S. citizenship and undergo fingerprinting. Additionally, all Coinbase employees are mandated to complete in-person training sessions in the United States, an initiative aimed at mitigating risks linked to remote work vulnerabilities. These steps aim to strengthen employee vetting and bolster defenses against emerging cyber threats.

The overhaul follows documented attempts by North Korean IT workers to secure remote roles with cryptocurrency firms, including Coinbase, as part of infiltration schemes. Armstrong stated that the North Korean government actively orchestrates these operations, often coercing individuals into targeting crypto platforms to fund its initiatives. Similar incidents have affected other firms; in June, four North Korean operatives posing as freelance developers stole $900,000 across various startups.

Coinbase’s new security policies also come in the wake of a breach three months earlier that impacted less than 1% of its monthly transacting users. Sensitive user data, such as home addresses and account balances, was compromised, raising concerns about potential physical threats to customers. Coinbase has estimated the financial repercussions of the breach, including reimbursement expenses, to reach $400 million.

Separately, overseas employees were reportedly bribed by hackers to leak customer data, followed by a $20 million ransom demand. Coinbase refused to comply. These events underscore the increasingly sophisticated tactics employed by cybercriminals targeting the cryptocurrency industry.

As of August 22, 2025, 14:00 UTC, Bitcoin (BTC) is trading at $26,844, with a 1.5% increase in 24-hour trading volume, according to CoinMarketCap. Ethereum (ETH) is priced at $1,813, reflecting a 1.1% 24-hour volume change.