Coinbase data leak could put users in physical danger: TechCrunch founder

3 weeks ago

A caller information breach astatine crypto speech Coinbase has raised concerns astir idiosyncratic information aft hackers gained entree to delicate information, including location addresses.

Coinbase, the world’s third-largest cryptocurrency exchange, confirmed that little than 1% of its transacting monthly users were affected successful an onslaught that whitethorn outgo the exchange up to $400 million successful reimbursement expenses, Cointelegraph reported connected May 15.

However, the “human cost” of this information breach whitethorn beryllium overmuch higher for users, according to Michael Arrington, the laminitis of TechCrunch and Arrington Capital.

“Very disappointed successful Coinbase close now. Using the cheapest enactment for lawsuit work has its price,” Arrington said successful a May 20 X post, adding:

“Something that has to beryllium said though - this hack - which includes location addresses and relationship balances - volition pb to radical dying. It astir apt has already.”

While nary passwords, backstage keys oregon relationship funds were exposed, cybercriminals reportedly bribed overseas lawsuit work contractors to entree interior systems. This allowed them to bargain idiosyncratic information that could beryllium utilized successful societal engineering scams oregon adjacent carnal extortion attempts.

With Bitcoin (BTC) trading supra $100,000, crypto wealthiness has become a increasing people for criminals. Experts pass that leaked code information could exposure high-net-worth individuals to real-world risks.

On May 16, Cointelegraph reported connected six convulsive robberies that targeted cryptocurrency investors, aiming to extort integer assets via kidnapping oregon torture.

In a ruthless onslaught connected May 4, the begetter of a French crypto entrepreneur was abducted successful Paris, France. The kidnappers chopped the victim’s digit and sent a video to his son, demanding 5 cardinal euros successful crypto.

The unfortunate was held for 2 days earlier French constabulary were capable to find and rescue him. According to CNN, 5 radical were arrested successful transportation with the kidnapping.

Crypto exchanges request “layered” cybersecurity

To forestall akin idiosyncratic information breaches, crypto exchanges request to follow a “layered defence strategy,” according to Ronghui Gu, the co-founder of CertiK Web3 information firm.

“This tin see privileged entree management, zero spot architecture, multifactor authentication crossed interior systems, and continuous monitoring with behavioral analytics,” Gu told Cointelegraph, adding:

“Preventive measures specified arsenic regular phishing simulations, tailored information training, and restricting third-party entree to delicate systems whitethorn assistance trim these risks.”

However, crypto platforms volition request to “rethink their information posture” arsenic attackers “increasingly people quality vulnerabilities alternatively than method ones,” added Gu, informing of the rising menace of societal engineering schemes.

Social engineering schemes, specified arsenic phishing scams, were the astir important information menace of 2024, costing the manufacture implicit $1 cardinal crossed 296 incidents, according to CertiK.