Coinbase Suffers Major Data Breach Ahead of S&P 500 Listing
Coinbase, a leading cryptocurrency exchange, has suffered a significant data breach. A small group of insiders were bribed to steal customer data, which will be used for social engineering attacks. Meanwhile, Coinbase is set to join the S&P 500 on May 19, a first for a pure-play crypto company. However, the SEC is investigating potential misstatements in Coinbase's user numbers.
The stolen data includes sensitive information such as names, addresses, partial social security numbers, bank account details, and government-issued IDs. Coinbase estimates that less than 1% of its monthly transacting users have been affected. In response, Coinbase is offering a $20 million reward for information leading to the arrest and conviction of the attackers. The company anticipates the incident could cost between $180 million and $400 million.
Coinbase's CEO and co-founder, Brian Armstrong, has not yet commented on the breach. However, the company's stock is trading after-hours at $247.45, up 1.23% from the previous close, and has risen by 19.52% over the past five days. This positive performance comes despite the recent security incident and the ongoing SEC investigation.
Coinbase's data breach highlights the importance of robust security measures in the cryptocurrency industry. As the company prepares to join the S&P 500, investors will be watching to see how Coinbase handles the fallout from the breach and the outcome of the SEC's investigation.
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