BlockBeats News, December 29: Indian police in Hyderabad arrested a former Coinbase customer service representative suspected of involvement in the insider data breach disclosed by Coinbase in May this year, marking the first known arrest in the case. The news was confirmed by Coinbase CEO Brian Armstrong.
The incident dates back to December 2024, with investigations revealing that cybercriminals bribed overseas customer service personnel to gain access to internal systems, stealing sensitive information from 69,461 users, including names, addresses, phone numbers, email addresses, and government-issued identification documents.
Coinbase stated that the attackers attempted to extort $20 million, which the company refused to pay, instead establishing a bounty program of the same amount to track down and apprehend those involved. Coinbase disclosed in its second-quarter financial report that the incident has resulted in $307 million in related expenses, covering user compensation, legal fees, and security upgrade costs.
Additionally, Coinbase is currently facing a shareholder class-action lawsuit, accused of failing to disclose the incident in a timely manner and misleading investors. Coinbase stated it will continue to cooperate with international law enforcement agencies in the investigation, hinting that further arrests may follow.
