rewrite this content using a minimum of 1000 words and keep HTML tags
Join Our Telegram channel to stay up to date on breaking news coverage
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 exchange, set to join the S&P 500 index on May 19, was the most impersonated crypto brand by scammers in 2024, according to data from Mailsuite.
https://t.co/evpIBMFvRW pic.twitter.com/f6UPdkL5R0
— Brian Armstrong (@brian_armstrong) May 15, 2025
SEC Investigates Coinbase For Potentially Misleading Investors Ahead Of 2021 IPO
Adding to the crypto exchange’s woes was a New York Times report that the SEC launched an investigation into whether it had misled investors and inflated its user numbers ahead of its public debut in 2021.
The leading US crypto exchange downplayed the investigation from the financial regulator, calling the SEC’s probe “a hold-over investigation” from the prior anti-crypto administration.
The SEC zoned in on Coinbase’s claim of “100+ million verified users” that appeared in its marketing and IPO documentation in 2021. Coinbase stopped reporting this metric in 2022, a filing with the SEC shows.
Related News:
Best Wallet – Diversify Your Crypto Portfolio
Easy to Use, Feature-Driven Crypto Wallet
Get Early Access to Upcoming Token ICOs
Multi-Chain, Multi-Wallet, Non-Custodial
Now On App Store, Google Play
Stake To Earn Native Token $BEST
250,000+ Monthly Active Users
Join Our Telegram channel to stay up to date on breaking news coverage
and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
Source link
