Sequoia Capital managing partner Roelof Botha was the victim of a serious data breach at Coinbase recently. Botha’s Coinbase account was hacked by cybercriminals who stole his personal details like his home address and phone number as well as his financial details.
The hack raised serious concerns about user security on the platform of the cryptocurrency exchange. The attackers reportedly bribed Coinbase support agents to gain unauthorized access to the accounts of targeted users, including high-profile individuals.
Bloomberg reported the criminals demanded $20 million from Coinbase, threatening to expose the breach. Coinbase refused to meet their demands, highlighting the seriousness of the situation.
While the net worth of Roelof Botha is not publicly disclosed, it is estimated he possesses hundreds of millions of dollars’ worth of assets. His participation in the breach leads one to wonder if other Sequoia Capital partners have also had their information stolen.
Similar attacks are said to have targeted Kraken and Binance users as well, although these platforms have not made a confirmation of related incidents as yet. A probe of the breach is ongoing, with focus now being on strengthening the security infrastructure of major crypto exchanges.
Coinbase breach exposes $400 million risk
Coinbase acknowledged the breach in a May 15 blog post, noting that the hackers used social engineering techniques to manipulate support agents. Coinbase’s chief security officer, Philip Martin, revealed that the agents involved were contractors based in India. Those agents were fired after the breach came to light.
Coinbase also filed a notice with the U.S. Securities and Exchange Commission, estimating losses related to the breach could range from $180 million to $400 million. The platform is preparing to compensate affected users for losses and reinforce security systems.
Following the news, Coinbase’s stock price dropped over 7%, falling to $244 per share. It has since recovered slightly, trading at $264.24. Meanwhile, CEO Brian Armstrong visited Washington, DC, to support pending crypto legislation in Congress.
