In a recent development, the CEO of Coinbase, one of the world’s leading cryptocurrency exchanges, expressed gratitude towards the Hyderabad Police in connection with a significant cyberattack that struck the firm earlier this year. Brian Armstrong acknowledged the arrest of a former Coinbase customer service agent, who is allegedly linked to this breach, in a tweet highlighting the company’s commitment to combatting cybercrime.
“We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice,” Armstrong stated, emphasizing the company’s stance on security and accountability. He went on to note the arrest as a significant step, adding, “Another one down and more still to come.”
The background of the incident dates back to May, when Coinbase reported that hackers had bribed individuals outside the United States—specifically contractors and employees—to gain access to sensitive customer information. The cybercriminals demanded a ransom of $20 million, and the financial fallout from the breach was estimated to reach up to $400 million.
A spokesperson for Coinbase confirmed the arrest and indicated that the firm had taken legal action against an individual from Brooklyn, who allegedly operated a long-running impersonation scheme targeting Coinbase customers.
Interestingly, despite the pressure, Coinbase chose not to pay the ransom demanded by the hackers. Instead, the company committed to reimbursing customers who were impacted by the incident, expressing its intention to assist those who were duped into transacting with the attackers. “We’re cooperating closely with law enforcement to pursue the harshest penalties possible and will not pay the $20 million ransom demand we received,” Coinbase reiterated, additionally announcing the establishment of a $20 million reward fund aimed at gathering information leading to the arrest and conviction of the criminals responsible for the attack.
Moreover, in the wake of the incident, Coinbase encouraged its customers to remain vigilant against potential scams. The company reassured users that it would never request sensitive information such as passwords or two-factor authentication codes, nor would it ask them to transfer assets to unfamiliar accounts. Acknowledging the distress caused by the breach, Coinbase expressed regret to those affected, stating, “We’re sorry for the worry and inconvenience this incident caused.”
