A recent submission to Main's Attorney General is accusing the info injury of Coinbase and claims that just about 70,000 users were affected and the incident was unnoticed for nearly six months.
After submitting the Latham and Watkins LLP law firm, 69,461 Coinbase users were endangered by the violation, of which 217 inhabitants of the US state are Maine.
The document also shows that the violation took place on December 26, 2024, but was only discovered on May 11, 2025 – almost six months after the cyber security incident.
Coinbase now looks at a variety of complaints from affected customers who argue that the exchange didn’t notice the victims of the safety violation in good time. The attack caused losses of 400 million US dollars on account of fraud and renovation costs for social engineering, said Coinbase.
CoinTelegraph contacted coinbase for a comment, but had not received a solution on the time of publication.
Coinbase data injury details. Source: Attorney General in Maine
The data injury triggered a debate in regards to the ethics of Know your Customer (KYC) data acquisition, which some argue that crypto holder adds risks. The incident also reflects the growing variety of cyber security incidents which might be stricken by the industry.
The Coinbase data injury sends shock waves through the crypto world
Coinbase became the goal of a ransom attempt after fraudsters had convinced several coin base skills employees handy over limited user information, including customer names, contact information and physical addresses.
The fraudsters then tried to blackmail the corporate within the payment of a ransom of 20 million US dollars so as to not take the info. However, Coinbase refused to barter with the threat players.
The Crypto Exchange dismissed the contractors who worked with the fraudsters handy over the user data and likewise promised renovation or reimbursements for all affected customers.
https://www.youtube.com/watch?v=t06mvwz6ngm
Despite the renovation efforts, the Coinbase stocks slipped by 7% in keeping with the news in regards to the data injury and the next extortion attempt.
Later reports showed that Roelof Botha, a partner of the enterprise capital company Sequoia Capital, was also a victim of the info leak, which indicates that the incident also influenced other people or corporations that were sure to the VC company.
The US Ministry of Justice (DOJ) has opened an investigation into the leak; It had not released the incident or in regards to the extortion attempt of May 21.
Managers, investors and legal experts from industries have warned that such data leaks threaten the physical security of crypto investors by making them the goals of extortion attempts, kidnapping and armed robbery.
