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Coinbase Confirms Hyderabad Arrest in Insider Data Breach Probe

The case stems from a 2025 scheme that bribed offshore support staff to steal customer data.

Overview

  • CEO Brian Armstrong said Hyderabad Police arrested a former support agent tied to the May breach, and he indicated further arrests are likely.
  • The attack relied on bribing non‑U.S. contractors to access sensitive user information, with filings listing 69,461 impacted customers.
  • Hackers demanded a $20 million ransom that Coinbase refused, and the company set up a $20 million reward fund for information leading to arrests and convictions.
  • Coinbase has recognized $355 million in related costs across Q2 and Q3 2025 and has estimated total remediation and reimbursements at roughly $180 million to $400 million.
  • The arrest follows cooperation with U.S. authorities, including a Brooklyn indictment alleging a phishing scheme that stole about $16 million from roughly 100 Coinbase users.