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Coinbase Says Ex-Customer Service Agent Arrested in India After May Breach

The development underscores cross-border progress in investigating a May breach involving bribed contractors, a $20 million ransom demand, plus active cooperation with U.S. prosecutors.

Overview

  • Hyderabad Police arrested a former Coinbase customer service agent in India, a move announced by CEO Brian Armstrong and confirmed by the company.
  • The May intrusion stemmed from attackers bribing support staff outside the United States to obtain customer data, followed by a $20 million extortion attempt.
  • Coinbase previously rejected the ransom, pledged reimbursements to affected users, and established a $20 million reward fund for information leading to arrests and convictions.
  • The company estimates remediation costs could reach up to $400 million, with ongoing security upgrades and tighter vetting of external contractors.
  • Cooperation spans multiple jurisdictions, including recent charges by the Brooklyn District Attorney in a related impersonation scheme, and Coinbase signaled that further arrests may follow.