INSUBCONTINENT EXCLUSIVE:
that the incident went unnoticed for nearly six months.According to the filing submitted by legal firm Latham and Watkins LLP, 69,461
Coinbase users were compromised by the breach, 217 of whom are residents of the US state of Maine.The document also indicates the breach
lawsuits from affected clients, who argue that the exchange failed to notify victims of the security breach in a timely manner
The attack caused $400 million in losses through social engineering scams and remediation costs, Coinbase has said.Cointelegraph contacted
Coinbase for comment, but had not received a response at time of publication.Coinbase data breach incident details
Source: Maine Attorney GeneralThe data breach sparked debate about the ethics of Know Your Customer (KYC) data collection, which some argue
adds risks to crypto holders
The incident also reflects the growing number of cybersecurity incidents plaguing the industry.Related: Coinbase faces lawsuit over alleged
breaches of Illinois biometric privacy lawCoinbase became the target of a ransom attempt after scammers convinced several Coinbase customer
service representatives to hand over limited user information, including client names, contact information, and physical addresses.The
scammers then attempted to extort the company into paying a ransom of $20 million in exchange for not leaking the data
However, Coinbase refused to negotiate with the threat actors.The crypto exchange fired the contractors who collaborated with the scammers
to hand over the user data and also promised remediation or reimbursements for any impacted clients.Despite the remediation efforts, shares
of Coinbase slid by 7% following news of the data breach and the subsequent extortion attempt.Later reports revealed that Roelof Botha, a
partner at venture capital firm Sequoia Capital, was also a victim of the data leak, suggesting that the incident also impacted other
updates on the incident or the extortion attempt as of May 21.Industry executives, investors, and legal experts have warned that such data
leaks threaten the physical safety of crypto investors by making them the targets of extortion attempts, kidnapping, and armed
robbery.Magazine: Pink Drainer creator defends his wallet-draining crypto scam kit
