Report: The U.S. Department of Justice is investigating the Coinbase data breach incident.

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13 hours ago

Source: Cointelegraph
Original: “Report: The U.S. Department of Justice is investigating the Coinbase data breach”

According to reports, the U.S. Department of Justice (DOJ) is investigating Coinbase's contract customer service agents in India, who accepted bribes allowing criminals to access user data.

According to a Bloomberg report on May 19, DOJ investigators are looking into the data breach incident that Coinbase publicly disclosed on May 15. The exchange reported that a group of customer support contractors—who were subsequently fired—“abused their access to steal a small portion of customer account data.”

Bloomberg reported that Coinbase's Chief Legal Officer Paul Grewal stated, “We have notified and are cooperating with the DOJ and other U.S. and international law enforcement agencies, and we welcome criminal charges against these bad actors.”

Coinbase stated, “No passwords, private keys, or funds were compromised,” but the data breach led to social engineering attacks against users, including a partner at Sequoia Capital, with estimated losses reaching up to $400 million. Attackers also attempted to extort $20 million from Coinbase in exchange for not disclosing the breach, but the company rejected the demand.

These attempts at social engineering attacks have led to multiple lawsuits against Coinbase by users, accusing the company of mishandling their personal data. A retired artist named Ed Suman reported a loss of $2 million as a result.

Coinbase's stock price fluctuated following the news of the data breach and the announcement of another unrelated investigation by the U.S. Securities and Exchange Commission (SEC) regarding its reported “verified users.” Cointelegraph has reached out to Coinbase for comment but has not received a response as of publication.

Related: Australian court ruling could lead to $640 million in Bitcoin (BTC) tax refunds

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