- The DOJ is investigating a significant data breach at Coinbase, impacting customer data security.
- Hackers demanded a $20 million ransom, while potential losses could reach $400 million.
- Coinbase is cooperating with global authorities; no passwords or funds were leaked directly.
Coinbase, a major cryptocurrency exchange, reported a data breach involving bribed Indian customer service agents leaking user information in May 2025. This breach has prompted a criminal investigation by the U.S. Department of Justice.
Legal scrutiny arises due to the breach’s potential $400 million financial impact, affecting Coinbase’s stock and sparking lawsuits.
DOJ Probes Data Breach in Coinbase’s $400 Million Crisis
Coinbase’s user data leak, revealed in May 2025, triggered a DOJ probe. Bribed support agents in India accessed and released customer information. Coinbase confirmed cooperation with authorities to ensure a thorough investigation.
The breach has led to possible financial repercussions up to $400 million. Users were subjected to social engineering attacks. No sensitive user credentials, such as passwords, were leaked directly, though the data enabled further fraud attempts against customers.
“We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement’s pursuit of criminal charges against these bad actors,” – Paul Grewal, Chief Legal Officer, Coinbase.
Insider Threat Exposed: Regulatory Revisions and Market Impact
Did you know? In previous breaches within the crypto industry, internal corruption, like the Coinbase incident, is rare compared to external technical hacks. This event exemplifies a sophisticated method of targeting and exploiting customer service vulnerabilities.
On May 20, 2025, 8-Bit Coin (COIN) stood at $0.00 with a market cap of $1.68 million, with no recorded 24-hour trading volume. Prices changed by 3.71% in 24 hours and 7.25% over seven days. Long-term trends showed declines: 34.75% over 30 days, 70.43% over 60, and 80.69% over 90 days (CoinMarketCap).
The Coincu research team highlights that potential regulatory consequences for Coinbase could shape future compliance measures. Strengthening internal policies and procedures may become necessary to prevent similar security lapses, emphasizing robust defense against insider threats in the cryptocurrency sector.
Source: https://coincu.com/338634-coinbase-data-breach-doj-investigation/