Coinbase data leak 'could kill people,' warns millionaire entrepreneur
What's the story
Michael Arrington, an American investor and founder of TechCrunch, has raised serious alarms over a recent data breach at Coinbase.
He thinks this security lapse could even result in deaths. The warning comes at a time when a string of kidnappings of rich crypto investors has been reported.
Earlier this month, Coinbase, the leading US cryptocurrency exchange, disclosed a significant data breach.
Cybercriminals bribed overseas support agents to access sensitive customer data, including names, contact information, and government ID images.
Response
Coinbase refuses ransom demand, offers reward for information
On Thursday, Coinbase revealed that hackers tried to extort $20 million in Bitcoin by threatening to leak the personal data of its customers. However, the company refused to comply with the demand.
Instead, it has offered a $20 million reward for information leading to the "arrest and conviction" of these cybercriminals.
Plus, Coinbase has promised to compensate any customers tricked into sending money to these scammers.
Investigation
Coinbase data breach prompts investigation by US Justice Department
The recent data breach at Coinbase has prompted an investigation from the US Justice Department.
The company has confirmed that it alerted authorities about this security incident and clarified that it is not under investigation.
However, Arrington insists that this is not enough action given the sensitive data exposed in the breach, including names, addresses, phone numbers, emails, government-ID images among others.
Safety concerns
Recent kidnapping incidents raise concerns for crypto investors
The recent spate of kidnappings of cryptocurrency owners has raised alarm bells.
In January, Ledger co-founder David Balland and his wife were kidnapped from their home in France.
In March, popular streamer Kaitlyn "Amouranth" Siragusa was assaulted by three armed men demanding her Bitcoin.
A crypto millionaire's father was rescued from kidnappers in May after days of captivity.
These incidents underscore the risks of holding high-value cryptocurrency.
Insider threat
Coinbase data breach underscores vulnerability of human access point
Coinbase's recent data breach, where customer service representatives were bribed to steal user information, underscores how human access points can be the weakest link in cybersecurity.
The company found multiple cases where support agents were collecting unnecessary information about users for their jobs.
Now, this incident has cost Coinbase up to $400 million, according to a filing with the US Securities and Exchange Commission (SEC).