Coinbase Exposes Cyber Extortion Plot, Offers $20 Million Reward

Coinbase is a leading U.S.-based cryptocurrency exchange founded in 2012 by Brian Armstrong. As of 2025, it serves over 100 million users across more than 100 countries, offering a secure platform for buying, selling, and storing digital assets. Coinbase provides a range of services for both retail and institutional investors, including trading, staking, and custodial solutions.

In a significant milestone, Coinbase is set to join the S&P 500 index on May 19, 2025, becoming the first crypto-native company to be included, reflecting its growing influence in the financial sector.

In a bold response to a disturbing extortion attempt, Coinbase has confirmed that cybercriminals successfully bribed a small number of rogue overseas support agents to access limited personal information on less than 1% of its monthly transacting users (MTUs). The attackers demanded $20 million in Bitcoin in exchange for not releasing the stolen data—but Coinbase is refusing to pay.

The compromised data includes personal details such as names, birthdates, and addresses, but no passwords, private keys, or funds were accessed. The breach did not affect Coinbase Prime accounts, and the company has pledged to fully reimburse any customers who were socially engineered as a result of the leak.

https://t.co/evpIBMFvRW pic.twitter.com/f6UPdkL5R0

— Brian Armstrong (@brian_armstrong) May 15, 2025

Coinbase CEO, in a public statement, emphasized the company's commitment to transparency and resilience. “We are not going to pay your ransom,” he said, addressing the attackers directly. Instead, the company is taking several decisive steps:

• Reimbursing all impacted customers who fell victim to social engineering.
• Strengthening internal systems to prevent similar future breaches.
• Relocating parts of its customer support operations to improve data integrity.

Most notably, Coinbase is establishing a $20 million reward fund for information leading to the arrest and conviction of the cybercriminals behind the attack.

Coinbase has vowed to pursue the harshest legal penalties possible against those involved and is urging the global community to assist in bringing the perpetrators to justice. The full details and reimbursement processes are outlined on the company’s official blog.

This move sends a strong signal across the industry: Coinbase won’t bow to digital blackmail—those who exploit customer trust will be met with fierce consequences.

Instead of bowing to pressure, Coinbase took a firm stand—choosing to go public, protect its users, and turn the tables on the attackers. By refusing the ransom, reimbursing affected customers, and offering a $20 million bounty for any leads, the company sent out a clear message: it won’t be bullied. This incident highlights not just the vulnerabilities in global support systems, but also what decisive leadership and accountability look like in the face of a digital threat.
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