Coinbase Faces Up to $400 Million Loss Following Cyber Attack

Coinbase, one of the world’s largest cryptocurrency platforms, has revealed it could face losses of up to $400 million (£301 million) following a recent cyber attack.

According to a company blog post, the attackers gained access to less than 1% of customer data by targeting Coinbase contractors and employees with illicit payments. The hackers then used the stolen information to impersonate the company and deceive users into handing over their cryptocurrency.

After the breach, the cybercriminals demanded a $20 million ransom in exchange for their silence. Coinbase refused to pay and instead pledged to reimburse all affected customers.

News of the incident caused Coinbase’s stock to drop by 4.1%, just days before the company is set to be added to the prestigious S&P 500 index — a significant milestone for the broader crypto sector.

The attack highlights the growing threat of cybercrime in the cryptocurrency industry as it continues to expand and gain mainstream recognition.