Coinbase reveals damage from massive data breach, crypto community outraged

Coinbase, the major US cryptocurrency exchange, was recently hit by a large-scale data breach. The attackers demanded a $20 million ransom.

In an earlier article, we reported that Coinbase decided not to comply. Instead, the company offered a $20 million reward.

Coinbase now reveals that as many as 69,461 users were affected by the breach.

Despite the high number of victims, Coinbase claims this represents only 1% of its total monthly users.

The breach was discovered on May 11, 2025, but the intrusion had been ongoing since December 26, 2024.

Coinbase estimates the cost of this breach at $180 million, with an additional $400 million for remediation and customer reimbursements, totaling over €511 million.

Investor Michael Arrington warns that the leaked data, including home addresses and balances, could endanger lives, especially given recent crypto-related kidnappings.

The US Department of Justice has launched an investigation into the breach at Coinbase's request, according to CEO Brian Armstrong.