The US Department of Justice has launched an investigation into a recent cyberattack involving Coinbase Global, a prominent cryptocurrency exchange, the company said on Monday.
Coinbase’s Chief Legal Officer, Paul Grewal, stated that the company has informed and is cooperating with the DOJ, along with other US and international law enforcement agencies, to assist in efforts to bring the perpetrators to justice. The company welcomed the involvement of law enforcement in pursuing criminal charges against those responsible for the breach.
According to Reuters, Coinbase itself is not the subject of the DOJ investigation. The probe is focused solely on the cybercriminals responsible for the breach.
On May 11, Coinbase received an email from an unknown individual who claimed to have access to sensitive details about some customer accounts and internal documents. The company anticipates potential losses from the incident to range between $180 million and $400 million.
The breach led to the exposure of some customer data including names, physical and email addresses, masked Social Security numbers, and select government-issued ID images. While it is made clear that important login information, including private keys, passwords, and customer cash, was unaffected and remained safe.
The company also disclosed that some overseas customer support employees were bribed and recruited by the attackers to access personal data of less than 1 per cent of its monthly active users. The company stated that the employees involved had been dismissed, and the company has committed to compensating customers who were misled into transferring funds to the attackers.
Coinbase stated it will not pay the $20 million ransom demanded by the hackers and has established a $20 million reward fund to help identify and apprehend those responsible. The company highlights its commitment to aiding law enforcement.
According to blockchain analytics company Chainalysis, hackers have allegedly stolen over $2.2 billion from different cryptocurrency platforms thus far in 2024, which indicates that cybersecurity remains a significant concern for the sector. This continued risk underscores the extreme importance of effective security measures and strict monitoring in the rapidly changing world of digital assets.
