Cryptocurrency exchange Coinbase is caught up in a US investigation after a hacking attempt and extortion plot. The company reported the incident to authorities as soon as possible.
Here’s what happened:
- Coinbase faced a hack and extortion attempt for $20 million.
- The company estimates costs between $180 million and $400 million to fix the issue.
- Less than 1% of users were affected, with no funds or private keys compromised.
- Coinbase is working with the US Department of Justice to investigate and find those responsible.
The incident occurred when a group of attackers tried to extort Coinbase, demanding $20 million in exchange for not releasing stolen customer data. This has raised concerns in the crypto industry, where security and user trust are key.
According to Bloomberg, the US Department of Justice’s Criminal Division is investigating the matter. Coinbase’s legal director, Paul Grewal, confirmed that the company is cooperating with authorities and welcomes the pursuit of criminal charges against the attackers.
The attack on Coinbase happened at a time when the digital asset industry is under unprecedented regulatory pressure. The company, which operates with licenses in multiple jurisdictions and is publicly traded, faces the challenge of maintaining public trust while dealing with the aftermath of the extortion attempt.
The outcome of this investigation could set a precedent for how cybercrimes are handled in the crypto ecosystem and what consequences the perpetrators might face.