Coinbase CEO Refuses $20M Ransom, Offers Bounty After Data Breach

Coinbase CEO Brian Armstrong revealed on May 15 via the X platform that the crypto exchange was targeted in a cyberattack involving a $20 million Bitcoin ransom demand. Hackers sent a threatening email claiming to possess sensitive customer data and threatened to release it unless paid in Bitcoin. Armstrong firmly refused, instead announcing a $20 million reward for any information that leads to the arrest and conviction of the attackers.

According to Armstrong, the breach stemmed from compromised overseas support agents who were bribed to access customer information, including names, birthdates, and addresses. Although no passwords, private keys, or funds were compromised, the stolen data was exploited for social engineering scams, aiming to deceive users into transferring funds.

In response, Coinbase has significantly upgraded its cybersecurity protocols. The company has relocated certain customer support operations and is offering full reimbursements to any affected customers. Armstrong emphasized that Coinbase will not negotiate with criminals, reinforcing the company’s zero-tolerance stance on ransom demands.

This incident highlights the growing threat of insider breaches in the crypto industry and the importance of proactive security. With over 100 million users worldwide, Coinbase’s decisive action sends a strong message across the digital asset space about protecting customer trust and data integrity.

Coinbase continues to collaborate with law enforcement and cybersecurity experts to track down those responsible. Armstrong’s bold move to counterattack with a bounty underscores the exchange’s commitment to transparency and accountability in the face of evolving cyber threats.

For crypto investors and users, this breach serves as a reminder to stay vigilant and use multi-factor authentication and cold wallets to safeguard digital assets. The exchange assures users that core systems remain secure and operations are unaffected.