Coinbase Reels From Data Breach That Could Cost $400M Ahead Of S&P 500 Inclusion
Coinbase is reeling from an internal data breach that could cost up to $400 million, just days before it’s set to join the S&P 500 index. The company disclosed that external actors bribed ”contractors or employees” to gain access to internal systems and sensitive customer data. The attackers then attempted to extort $20 million from the exchange, threatening to leak the compromised information. Coinbase did not pay the ransom, and said less than 1% of its monthly transacting users’ data was affected by the attack. Coinbase has also fired the contractors involved in the breach. Coinbase said it will reimburse users who lost funds, a move expected to cost between $180 million and $400 million, according to a recent Securities and Exchange Commission (SEC) filing. Coinbase (COIN) shares plunged 7% to $244.44 on Thursday, amid growing concerns over the breach and a new SEC investigation into whether the firm misled investors ahead of its 2021 IPO. The exchan...