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A scandal is shaking the crypto sphere once again. The crypto exchange Coinbase is indeed facing a wave of lawsuits following the revelation of a serious data breach involving its customer service. Several users claim to have seen their sensitive information exposed due to an internal cyberattack. More details below!
In Brief
- Coinbase faces six lawsuits after a massive data leak due to an internal attack.
- The crypto platform is accused of negligence in managing the breach and protecting users.
A Crypto Attack That Turns Into a Judicial Scandal
Between May 15 and 17, no fewer than six complaints were filed against the crypto platform Coinbase in federal courts in New York and California.
At the heart of the case: customer service agents are alleged to have been bribed by cybercriminals to provide access to internal systems. This breach facilitated the latest crypto hack operated on the exchange. But that’s not all! It also allegedly enabled the theft of several sensitive data, including:
- names;
- addresses;
- phone numbers;
- account extracts;
- passports;
- social security numbers.
According to the plaintiffs, Coinbase failed to implement reasonable data security measures. The result: millions of crypto users find themselves exposed to a serious and ongoing risk of identity theft and financial fraud.
The worst? The crypto company reportedly took time to respond. Indeed, it did not immediately offer a concrete solution to protect the victims.
Coinbase Tries to Contain the Damage, Without Convincing
In the face of this chaos, the crypto exchange Coinbase announced its refusal to give in to the $20 million ransom demanded by the hackers. The company also declared its intention to refund users affected by phishing to the tune of $180 to $400 million. A potentially huge cost for a publicly traded company!
That’s not all! Several agents based in India have reportedly been fired, suspected of participating in this crypto cyberattack.
Granted, the stock price briefly dropped by 7%. However, it has since rebounded by 9%. This proves that the market remains uncertain about the long-term consequences of this crypto case.
This Coinbase case certainly reminds us how crucial cybersecurity is in the crypto world. As user trust is a valuable currency, platforms will need to redouble their efforts to prevent the next scandal from engulfing their reputation.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
