Coinbase Data Leak: What Happened and Why Users Are Furious

Coinbase Data Leak- Crypto Users Question Coinbase’s Security After Data Leak Incident

Coinbase Data Leak– Coinbase users are expressing their anger after reports suggest that a significant data breach, which allegedly impacted less than 1% of the platform’s monthly active users, occurred months before it was disclosed by the company. The breach has led to an uptick in phishing and impersonation scams targeting users. One such victim, QwQiao, a customer support member at Alliance DAO, shared how he nearly fell victim to a well-crafted scam but managed to outsmart the fraudsters. “I called them out at the end of the call, telling them they need to step up their game because this scam is retarded. They told me that they had made $7 million that day,” he said.

Many in the crypto community are now questioning Coinbase’s handling of sensitive user data. Adam Cochran, a well-known figure on X (formerly Twitter), criticized Coinbase for not protecting critical information such as government IDs and physical addresses. Cochran believes this failure poses risks far beyond financial loss. “Coinbase’s disclosure here focuses on the stolen funds, but that’s irrelevant…No element of KYC/AML policy requires this kind of stuff to be accessible to your customer support agents. I don’t want to hear about what Coinbase is doing to recover funds – I want to hear what they are doing to better deal with private data,” Cochran stated.

Coinbase’s Silence Sparks User Vulnerability

The breach allegedly dates back to January, but Coinbase remained silent until now, leaving its users at risk for months. Analysts and users are calling this delay unacceptable, with some pointing out that this could even put institutional holdings at risk. According to Duo Nine, a well-known analyst, Coinbase’s inaction has left many vulnerable to impersonation schemes.

What makes this breach particularly unsettling is that Coinbase was not hacked. Instead, it was a case of internal betrayal. A support employee allegedly accessed and sold sensitive customer data on the black market, raising serious concerns about Coinbase’s internal security. Eleanor Terret, another commentator, noted that the concentration of custody services at Coinbase could make the platform a single point of failure, which is a dangerous prospect for the crypto industry.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.