Coinbase Sets $20M Fund to Combat Data Breach – Coincu

Coinbase has allocated a $20 million bounty to address a significant data breach that involved unauthorized access to customer information via bribed overseas support personnel.

The breach involved unauthorized access to customer data through bribed overseas support personnel. Despite this incident, passwords, private keys, and funds remained secure. The incident affected personal data such as names, emails, and partial Social Security numbers.

Coinbase Allocates $20M Bounty to Combat Breach

The breach involved unauthorized access to customer data through bribed overseas support personnel. Despite this incident, passwords, private keys, and funds remained secure. To mitigate the breach’s impact, Coinbase created a $20 million reward fund aimed at tracking down the perpetrators. The incident affected personal data such as names, emails, and partial Social Security numbers.

Major market reactions included a notable decline in Coinbase’s stock price, reflecting investor concerns. Coinbase’s move to compensate affected users is perceived as a measure to rebuild trust. Executive spokesperson Natasha LaBranche stated that losses could range between $180 million and $400 million.

The number of affected customers is less than 1% of the company’s 9.7 million monthly users. – Natasha LaBranche, Representative, Coinbase, confirmed, via TechCrunch

Enhanced Security Measures and Possible Regulatory Scrutiny Ahead

Coinbase’s response signals a shift toward enhanced security measures and revised operational strategies, including repatriating some support functions to the United States. Financial experts predict potential regulatory scrutiny and increased cybersecurity investments as Coinbase aims to safeguard its platform and restore investor confidence.