Coinbase CEO Says Company Won't Pay Hackers' Ransom | Entrepreneur

[ad_1] Coinbase CEO Brian Armstrong stated in a social media put up Thursday {that a} ransom notice arrived by way of e mail asking for $20 million in Bitcoin in trade for not releasing info hackers had obtained on Coinbase's prospects.

"I will reply publicly," Armstrong stated. "We're not going to pay ransom."

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

— Brian Armstrong (@brian_armstrong) Could 15, 2025 Armstrong stated attackers had discovered a "weak hyperlink" customer support agent exterior the U.S. who accepted a "bribe" and gave away private knowledge on prospects.

In an organization weblog put up, Coinbase stated it'll reimburse prospects tricked into sending funds to the attacker. Hackers obtained entry to names, addresses, telephone numbers, and emails; masked Social Safety numbers (final 4 digits solely); masked financial institution‑account numbers; and authorities‑ID photos (driver's licenses, passports). No passwords or personal keys have been obtained, the corporate says. The e-mail arrived on Sunday.

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"(The stolen knowledge) permits them to conduct social engineering assaults the place they'll name our prospects impersonating Coinbase buyer assist and attempt to trick them into sending their funds to the attackers," Armstrong stated.

Per the AP, Coinbase estimated in a submitting with the SEC that it might find yourself spending wherever between $180 million and $400 million "regarding remediation prices and voluntary buyer reimbursements regarding this incident."

In the meantime, the New York Occasions stories that the SEC is individually investigating Coinbase over whether or not or not it reported inaccurate numbers throughout its IPO in 2021. The corporate claimed to have greater than 100 million "verified customers" in advertising and marketing supplies.

Coinbase's inventory dropped 7% on Thursday after the information, per Yahoo.

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Coinbase CEO Brian Armstrong stated in a social media put up Thursday {that a} ransom notice arrived by way of e mail asking for $20 million in Bitcoin in trade for not releasing info hackers had obtained on Coinbase's prospects.