Summary of this article
Ex-Coinbase agent arrested in Hyderabad over crypto exchange hack.
Attackers bribed staff; $400 million potential breach losses assessed.
Coinbase shares drop 1.2%, crypto sector faces ongoing security challenges.
Coinbase on Friday, 26 December, said a former customer service agent was arrested in India, months after the crypto exchange flagged a major security incident involving unauthorized access to sensitive customer information and internal company records.
Coinbase CEO Brian Armstrong confirmed the development in a social media post, saying that the arrest had taken place, while expressing appreciation for the Hyderabad Police for their support in the investigation and noting progress in the ongoing legal proceedings.
Armstrong tweeted, “We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice. Thanks to the Hyderabad Police in India, an ex-Coinbase customer service agent was just arrested. Another one down and more still to come.”
In May, Coinbase disclosed that certain overseas customer support employees were allegedly bribed by attackers to gain access to sensitive customer information and internal company documents. The company launched an internal investigation and took steps to secure its systems following the incident.
Coinbase received a ransom demand of $20 million, which it refused to pay. The company has since been assessing potential financial losses from the breach, estimated to be around $400 million.
The breach was one of the notable security incidents affecting a crypto trading platform.
According to Bloomberg, a spokesperson for Coinbase confirmed the arrest in India, noting that it comes after the company’s recent collaboration with the Brooklyn District Attorney’s Office, where prosecutors filed charges against a Brooklyn-based individual accused of running a long-running impersonation scheme targeting Coinbase customers.
Following the announcement, shares of Coinbase fell about 1.2 per cent to $236.79 on Friday. The stock has declined roughly 4.6 per cent so far this year, reflecting investor caution amid ongoing security concerns in the crypto trading sector.
While the cryptocurrency industry continued to grow, it also faced security challenges. According to blockchain analytics firm Chainalysis, over $3.4 billion was stolen from January through early December 2025.
