May 17, 2025 — Cryptocurrency exchange Coinbase has confirmed it was the target of a major $400 million insider hack, in a breach that compromised the personal data of approximately 84,000 users worldwide.
In a statement released Friday, the company said the incident involved unauthorized access orchestrated by a malicious insider, marking one of the largest security breaches in the exchange’s history. The affected data reportedly includes user email addresses, full names, and partial transaction histories.
Coinbase emphasized that while no private keys or passwords were accessed, the breach represents a serious threat to user trust and security. The company has since launched a comprehensive internal investigation and engaged external cybersecurity firms to assist with forensic analysis.
As part of its response, Coinbase is offering a $20 million bounty for information leading to the identification, apprehension, or prosecution of the individuals responsible. Law enforcement agencies, including the FBI and Interpol, are also said to be involved in the ongoing investigation.
“We are taking this breach extremely seriously,” Coinbase said in its official statement.
“Protecting our users is our top priority, and we are committed to holding those behind this attack accountable.”
The exchange has initiated enhanced security protocols, temporarily suspended access for certain internal roles, and directly notified all affected users. Impacted account holders will receive one year of free identity theft monitoring and fraud protection services, the company added.
This breach comes at a time of heightened regulatory scrutiny on cryptocurrency platforms, and analysts warn that incidents like this could fuel calls for stricter oversight of digital asset exchanges and their internal governance.
Coinbase shares (NASDAQ: COIN) fell over 6% in after-hours trading following the announcement.
Coinbase Picture on Pexels by Bastian Riccardi
