Coinbase Rejects $20 Million Ransom, Offers Equal Bounty After Breach Hits Under 1% of Users

Coinbase Global Inc. disclosed that cybercriminals bribed a small group of its overseas customer-support agents to obtain personal data belonging to fewer than 1% of the exchange’s monthly transacting users. The compromised information includes names, addresses, phone numbers and limited account details, but no passwords, private keys or customer funds. Coinbase Prime accounts were not affected.

The attackers demanded a $20 million ransom to keep the data from being released. Coinbase said it will not pay and has instead offered a reward of up to $20 million for information leading to the perpetrators’ arrest and conviction. The company added that all affected customers will be reimbursed.

Management estimates the incident could cost between $180 million and $400 million, covering compensation, security upgrades and potential legal expenses. Coinbase said it is cooperating with law-enforcement agencies and strengthening controls over its outsourced support operations.

The disclosure sent Coinbase shares down about 3.3% in US pre-market trading on Thursday.

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