While Coinbase has long boasted about its bulletproof security measures, the cryptocurrency giant found itself scrambling after overseas support agents went rogue in May 2025. The breach hit nearly 70,000 customers – and boy, did the hackers have fun with it. They even sent taunting messages through Ethereum transactions, including “L bozo” and a meme video. Real professional stuff. CEO Brian Armstrong has made it clear the company is taking legal action to pursue and prosecute the attackers.
The damage? Somewhere between $180-400 million in remediation costs. That’s quite a bill for a company already dealing with $65 million in customer theft losses from the previous months. The hackers made off with a treasure trove of personal data: names, addresses, masked Social Security numbers, and even passport photos. At least they didn’t get passwords or crypto keys – small comfort for affected customers. Many experts recommend using self-custody wallets to maintain direct control over digital assets and prevent such breaches. Coinbase quickly emailed users and promised to provide full reimbursement for any losses.
Hackers snagged personal data and left Coinbase with a $400M cleanup bill – but hey, at least they didn’t get the crypto keys.
Coinbase’s response was swift but somewhat ironic. They offered a $20 million reward for information leading to the criminals’ arrest – exactly the same amount the hackers had demanded in ransom. The company also kicked out everyone involved and promised to bring more customer support operations back to the US. Because apparently, that’s what it takes to realize that maybe handling sensitive financial data from anywhere in the world isn’t the best idea.
Security experts weren’t impressed. The breach could have been prevented with better background checks and warning systems, they said. It’s a particularly embarrassing moment for America’s largest crypto exchange, especially with the SEC already breathing down their neck.
The incident has uncomfortable similarities to the 2021 Ledger breach, which led to actual robberies in the real world. The crisis highlights an awkward truth about cryptocurrency: for all its promises of revolutionary technology, it’s still vulnerable to something as old-school as bribed employees.
Coinbase is now offering theft protection services to affected customers, but the damage to its reputation might be harder to fix. In the world of crypto, trust is currency – and Coinbase just lost a chunk of both.
