The US Division of Justice is reportedly conducting a probe over Coinbase’s contracted customer support brokers in India, who accepted bribes in trade for permitting criminals entry to consumer data.
In line with a Might 19 Bloomberg report, DOJ investigators are trying into the data breach, which Coinbase disclosed to the public on Might 15. The trade reported {that a} group of buyer assist contractors — subsequently fired — “abused their entry to […] techniques to steal the account data for a small subset of consumers.”
“We have now notified and are working with the DOJ and different US and worldwide regulation enforcement companies and welcome regulation enforcement’s pursuit of felony expenses towards these unhealthy actors,” stated Coinbase’s chief authorized officer, Paul Grewal, in response to Bloomberg.
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Although “no passwords, non-public keys, or funds had been uncovered” in response to Coinbase, the data breach resulted in social engineering assaults concentrating on customers, including a Sequoia Capital partner, with losses estimated at as much as $400 million. The attackers additionally tried to extort $20 million from Coinbase in trade for not disclosing the breach, which the corporate refused.
Backlash within the courts
The tried social engineering assaults have resulted in Coinbase customers filing several lawsuits towards the trade, alleging that the corporate mishandled their private data. One consumer, a retired artist named Ed Suman, reported losing $2 million to the scammers.
Coinbase’s inventory value fluctuated following the information of the breach and an unrelated probe from the US Securities and Change Fee over its reported “verified consumer” numbers. Cointelegraph reached out to Coinbase for remark however had not obtained a response on the time of publication.
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Cointelegraph by Turner Wright DOJ is investigating Coinbase data breach— Report cointelegraph.com 2025-05-19 21:32:55
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