Coinbase CEO Issues Strong Statement After Arrest Announcement

(MENAFN- Crypto Breaking) In a major win for international cybercrime enforcement, India's Hyderabad Police have arrested a former Coinbase support agent involved in a significant bribery scheme targeting the U.S.-based cryptocurrency exchange.

Unlike typical cyberattacks that exploit software vulnerabilities, this breach involved human compromise. Hackers reportedly reached out to third-party contractors in India, offering them money for access to Coinbase's servers. This access exposed sensitive information from thousands of users, leading to a $20 million ransom attempt and leaving Coinbase with nearly $400 million in recovery costs and customer reimbursements.

Coinbase CEO Responds

Coinbase CEO Brian Armstrong shared news of the arrest online, stating that the company will continue to track down everyone involved said,

He added,

However, not everyone shared Armstrong's sentiment. One user replied,

Breach Detected Months Before Public Announcement

The hack started many months prior to the disclosure of the breach made by Coinbase publicly in May 2025. There was internal security logs that showed that Coinbase became aware of unusual activity as far back as January before they realized the scale of the compromise.

The hackers carried out this plan in May, demanding a ransom of 20 million dollars and threatening to release the information of customers to the dark web. CEO Brian Armstrong did not pay, but applied the same amount of money to a public bounty to whoever could assist in identifying and apprehending the offenders. With this technique, the ransom demand became a reward on the capture of the hackers.

The breach caused a lot of damage even without the payment of the ransom. Blockchain analytics company Elliptic estimated that the cost, including system remediation and customer money refunds, was between 180 million and 400 million dollars, which made the occasion one of the ten most expensive in the history of decentralized finance.

Coinbase Stock Drops After Security Breach News

Coinbase's stock (NASDAQ: COIN ) fell 1.18% to $236.90 following the news, reflecting investor concerns that human error and insider threats remain a significant risk.

As investigations continue, Coinbase has pledged to pursue all individuals involved, signaling a firm stance against insider collusion and cybercrime.

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