Internal Leak Causes Controversy For Coinbase
Get the Scoop on Coinbase's Data Breach Debacle!
Crypto community's been shaking things up after a rogue Coinbase employee allegedly spilled the beans on sensitive user data. And the madness unfolded months before the company even noticed!
User Outrage - Data Leak Happened Months Back!
The insider spill, which hit "less than 1%" of Coinbase's whopping monthly active users, has sent the crypto world into an uproar! Users are reporting being targeted in crafty phishing and impersonation scams.
Take QwQiao for example, an alleged target who shared his hair-raising experience. He works in customer support at Alliance DAO and narrowly escaped the scam. He spilled the tea, "...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!"
Adam Cochran, Twitter's crypto kingpin, slammed Coinbase for failing to safeguard sensitive data like gov't IDs and addresses, which could lead to risks that far surpass mere financial loss. Too hot to handle? Check this out:
"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 spit fire.
Users are on fire as they question why Coinbase kept silent for months, leaving them vulnerable and in the dark. Analyst Duo Nine ripped into Coinbase, "Coinbase knew they had their user data stolen since January, but said nothing until now? We've had endless reports of Coinbase users being drained by impersonators. Now we know why!"
According to Duo Nine, Coinbase's supposed oversight puts even institutional holdings under the spotlight. Coinbase, which rules the crypto spot ETF market, provides custody services for eight of 11 Bitcoin ETFs and eight of nine Ethereum ETFs.
Call it déjà vu, but this ain't Coinbase's first rodeo with custody-related concerns. Coinbase exchange's dominance in custody services has sparked concerns about becoming a single point of failure before. As Eleanor Terret put it recently, "It doesn't bode well that nearly all crypto ETF issuers have the same custodian for all their BTC and ETH. This makes Coinbase a potential single point of failure, and that's scary!"
Word on the street is that Coinbase is sitting tight and didn't respond to BeInCrypto's requests for comment yet.
This Leak's Unpredictable and Deadly!
And there's more! Concerns are on the rise since the breach was an inside job, with a support employee accessing and selling customer data on the black market. To some, this proves a major lapse in internal controls. Position trader Bob Loukas kept it real with his candid statements, "You know you're sitting on the most sought-after data, and you allowed support agents to access it in bulk. That's unacceptable!"
The implications reach beyond financial theft. Identity data centralization alongside crypto balances has Rotki founder Lefteris Karapetsas worried. He pointed out that these combo packs are a "disaster waiting to happen! KYC means handing over your identity to be leaked, sold, or extorted. The combination of data exposed here (real-life addresses, crypto addresses, and amount and real-life ID documents) is lethal."
Insider info reveals that the breach can be traced back to January. Coinbase's silence left users exposed for months, while reports of targeted attacks piled up. Things turned ugly with the recent revelations, and the outcry's only getting louder!
Coinbase has yet to address the storm, but they're offering a $20 million reward fund for any intel leading to the bad actors' arrest and conviction. They also ensured all hit customers already received an email from [email protected] at 7:20 a.m. ET.
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Join the Uphold Revolution!Coinbase's battles continue as the wound runs deep; we'll be keeping a close eye on how this drama unfolds!
- The data breach at Coinbase, where a support employee allegedly leaked sensitive user data, has sparked outrage within the crypto community.
- Users are concerned, especially after discovering they were targeted in phishing and impersonation scams following the breach.
- Adam Cochran, known as Twitter's crypto kingpin, has criticized Coinbase for failing to secure government IDs and addresses, potentially leading to extensive risks.
- Analyst Duo Nine has accused Coinbase of keeping silent about the breach for months, leaving users exposed and unaware.
- The alleged data breach raises concerns about Coinbase's dominance in the crypto ETF market and its potential risk as a single point of failure.
- Insider info suggests the breach occurred in January, leaving users vulnerable for months while reports of targeted attacks mount.
- The recent revelations have intensified the outcry, with Rotki founder Lefteris Karapetsas describing the combination of exposed data as a "disaster waiting to happen."
- In an attempt to address the situation, Coinbase has announced a $20 million reward fund for information leading to the arrest and conviction of the responsible parties, and has reached out to affected users via email.
