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Coinbase Says Insiders Worked With Cybercriminals to Steal Customer Data and Crypto

By Kim S. Nash

 

Happy Friday. The insider threat got real at Coinbase.

The crypto exchange said Thursday it has refused to pay a $20 million ransom demand from cybercriminals who bribed the company’s overseas customer support agents to steal sensitive user data.

Coinbase estimated the incident could cost $180 million to $400 million, between fixing the underlying issues and reimbursing customers who were tricked into sending funds to the attackers, according to a regulatory filing.

The company also said it fired the insiders who cooperated with the scammers and will press criminal charges against them. Read the full story.

By the way, Coinbase is offering a $20 million reward for helping identify and take down the attackers. Email security@coinbase.com.

More news below.

 

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More Cyber News

PHOTO: JUSTIN SULLIVAN/GETTY IMAGES

Kitchenware retailer Sur La Table agreed to pay $550,000 to settle a proposed class-action lawsuit over a 2023 cyber incident that breached the personal data of 40,646 then-current and former employees. Class members must submit a claim by July 7 and could receive up to $4,000 if they can show losses reasonably traced to the incident.

$1 billion deal: Cyber and compliance company Proofpoint said it plans to buy Hornetsecurity Group, a Hanover, Germany-based supplier of cyber products to Microsoft customers. The deal exceeds $1 billion and is Proofpoint's largest acquisition, a spokeswoman said. The transaction is due to close in the second half of 2025. 

Scammers are mimicking current and former federal and state officials with AI-enabled voice messages to try to access government accounts, the Federal Bureau of Investigation said Thursday. (Reuters)

Trump’s memecoin dinner to draw crypto high rollers. One attendee planning to attend the VIP reception on May 22 is a cybersecurity specialist known by the pseudonym “Ogle,” who is an adviser to World Liberty Financial. Ogle, who gives video interviews with a bandanna and sunglasses covering his face, says he hides his identity to protect himself from cybercriminals. (WSJ)

Weekend reading: Threat researchers from Intel 471 have done a deep dive on the life of Andrei Tarasov, an accused Russian hacker wanted by the FBI for disseminating Angler malware. The man's escapades through Europe and subsequent arrests make good reading. (SecurityWeek)

“This should serve as a wake-up call for any business: your people, and the people working adjacent to your people, are the new perimeter.”

— Eran Barak, CEO of data loss prevention firm MIND, on the Coinbase hack
 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten, James Rundle and Catherine Stupp. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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