Coinbase Issues $20M Bounty on Hackers Behind Extortion Attempt

Coinbase is offering a $20 million bounty for information that will lead to the capture of hackers behind a recent social engineering attack. These malicious individuals tried to blackmail the exchange over stolen user records.

In a blog post, the firm disclosed that a group of external actors coordinated with several customer support contractors. This collaboration allowed them to access internal systems and steal limited user account data.

Malicious Actors Demand $20M Ransom

The exchange stated that the criminals obtained less than 1% of Coinbase’s monthly users from overseas support agents with cash offers. The stolen data included names, email addresses, phone numbers, and limited account metadata. Notably, no passwords, private keys, or user funds were compromised in the breach.

“They used cash offers to convince a small group of insiders to copy data in our customer support tools for less than 1% of Coinbase’s monthly transacting users. Their aim was to gather a customer list they could contact while pretending to be Coinbase—tricking people into handing over their crypto,” the exchange said. 

After stealing the data, the attackers reportedly demanded a $20 million ransom in exchange for not releasing the data publicly. Coinbase refused to pay the ransom. Instead, it opened a $20 million reward for information leading to the arrest and conviction of those responsible for the scheme.

Following the attack, the exchange emphasized that it would strengthen its internal data management processes. It also plans to relocate some of its customer support operations to avoid similar incidents. Furthermore, Coinbase highlighted that it has engaged law enforcement on the matter and pledged to reimburse affected users.

Social Engineering Scams

The latest incident highlights a growing cybersecurity risk in the crypto industry. For years, malicious individuals have used social engineering tactics to target and defraud victims. 

An earlier CoinTab report detailed how Coinbase users lost over $46 million to suspected thefts. According to blockchain investigator ZachXBT, these scammers often use phone number spoofing and phishing emails to steal personal data. The research mentioned that Coinbase users have faced an estimated $300 million yearly loss due to social engineering scams.

Meanwhile, Coinbase’s recent actions reflect a proactive approach to combat cybercrime—emphasizing transparency, accountability, and community defense.

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