A recent data breach at crypto exchange Coinbase has raised concerns about user safety after hackers accessed personal information, including home addresses.
The world’s third-largest crypto exchange, Coinbase, confirmed that a recent attack affected less than 1% of its monthly active users. It could cost the company up to $400 million in reimbursements, according to a May. 15 report.
However, the personal impact of this data breach could be much more severe for users, says TechCrunch and Arrington Capital founder Michael Arrington.
Really disappointed in Coinbase right now. Going with the cheapest customer service option comes at a cost, Arrington said in an X post on May. 20, adding:
Something that has to be said though – this hack – which includes home addresses and account balances – will lead to people dying. It probably has already.
Surge in violent attacks as Bitcoin tops $100K
Crypto wealth is increasingly becoming a target for hackers with Bitcoin trading above $100,000. Experts warn that leaked address information could put wealthy individuals at real-world risk.
On May. 16, experts reported six violent robberies targeting crypto investors, where the attackers used kidnapping or torture to steal digital assets.
Kidnappers abducted the father of a French crypto entrepreneur in Paris on May. 4. The kidnappers cut off his finger and sent a video to his son, demanding 5 million euros in cryptocurrency.
The victim was held for two days before French police found and rescued him. CNN says five people were arrested in connection with the kidnapping.
Crypto’s $1B security wake-up call
CertiK co-founder Ronghui Gu says the crypto exchanges should adopt a “layered defense strategy” to prevent similar user data breaches.
However, crypto platforms will need to rethink their security strategies as attackers are increasingly target human weaknesses instead of technical ones, Gu added. Moreover, he warned about the rising danger of social engineering scams.
Social engineering schemes like phishing scams were the biggest security threat in 2024. According to CertiK, these attacks cost the industry more than $1 billion across 296 incidents.
