Coinbase is facing renewed scrutiny after a Reuters investigation revealed the company had prior knowledge of a data breach months before going public. The hack, which exposed personal data of numerous customers—including names, phone numbers, and addresses—was disclosed only on May 15. Yet, according to a filing with the U.S. Securities and Exchange Commission (SEC), the crypto exchange admitted it had already been aware of unauthorized data access by contractors “in previous months.” This delay in disclosure has triggered alarm among users and regulators about Coinbase’s transparency and internal security protocols.
Breach Linked to Bribed TaskUs Employees in India
The breach was reportedly orchestrated through an outsourcing contractor, TaskUs, with the operation allegedly tracing back to its office in Indore, India. A female employee was caught photographing her computer screen with a personal phone—an act that TaskUs said it immediately reported to Coinbase.
According to three former TaskUs employees, the woman and a possible accomplice were accused of selling user information to hackers for bribes. The report also stated that over 200 employees were terminated in a mass layoff following the breach, highlighting a major failure in vetting and monitoring overseas contractors.
Also Read: Render (RENDER) Steady at $4.20 Despite Coinbase Exit
High-Profile Targets and Legal Fallout
Among those affected by the breach was Sequoia Capital’s Roelof Botha, intensifying concerns over the security of high-profile accounts. Coinbase has since claimed that no funds, private keys, or passwords were compromised, and Prime accounts remain untouched.
However, the exchange’s Chief Legal Officer, Paul Grewal, confirmed that the Department of Justice (DOJ) is now involved, with investigations ongoing. While Coinbase has pledged to reimburse affected users and severed ties with the compromised TaskUs personnel, the delay in acknowledging the breach publicly has fueled criticism and raised broader questions about how crypto platforms handle sensitive user data.
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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
