From Nasdaq

May 21, 2025 9:05 am:

Coinbase experienced a security breach affecting 1% of its monthly users, with potential costs ranging from $180 million to $400 million. Hackers bribed employees for access to user data and demanded a $20 million ransom. Coinbase has promised to cover user losses and improve security measures. The hack raises concerns about the safety of funds on crypto exchanges.

The hackers did not access sensitive data like passwords but obtained personal information from 97,000 users, including names, addresses, Social Security numbers, and bank details. This data can be used for social engineering attacks. Coinbase will cover any customer losses from the hack and has taken steps to enhance security and support. Concerns about crypto exchange safety persist.

Investors need to be vigilant against phishing and social engineering attacks and monitor bank statements for potential fraudulent activity. Consider using a non-custodial crypto wallet for added security, or invest in a crypto ETF for safety. With the rise of crypto, protecting assets and being cautious are crucial for investors in this evolving market.

Coinbase’s security breach highlights the risks associated with crypto exchanges and the importance of safeguarding digital assets. Investors should consider security measures like using non-custodial wallets and ETFs. The incident raises questions about the safety of funds on exchanges compared to traditional banks and brokerages. Stay informed and take steps to protect your investments.

Read more at Nasdaq: What the $400 Million Coinbase Hack Means for Your Crypto