U.S. DOJ Probes Coinbase Breach Linked to Alleged Insider Bribery Scheme

The United States Department of Justice (DOJ) has launched a criminal investigation into a recent cybersecurity breach at Coinbase Global Inc. The investigation centers on insider involvement and the compromise of user data.

As part of the probe, authorities are looking into Coinbase’s claim that the breach resulted from foreign customer service agents accepting bribes to leak sensitive information. They aim to uncover how malicious actors gained unauthorized access by working with offshore support staff.

Targeted Breach and Bounty Response

According to Coinbase, the attack targeted its India-based support operations, where several employees and contractors were reportedly paid to share confidential client data. An internal review later confirmed that some overseas support personnel had been manipulated into disclosing private user information.

The company described the breach as highly targeted, affecting fewer than 1% of its monthly active users. Exposed data included full names, phone numbers, residential addresses, and banking details. Coinbase emphasized that sensitive credentials, such as login information, wallet access, and private keys, remained secure.

The situation escalated when the attackers demanded a $20 million ransom in exchange for withholding the stolen data. Coinbase declined to pay and instead launched a full investigation. In a countermove, the company offered a $20 million bounty for information leading to the identification and capture of those behind the breach.

Cooperating With Regulators After Breach

Before the breach, Coinbase observed unusual activity among its overseas customer service team. A recent company filing revealed that certain non-U.S.-based agents had accessed internal systems and extracted user data without authorization. Coinbase said it terminated the individuals involved after uncovering the misconduct.

The firm has since reported the breach to global regulators and law enforcement agencies. Chief Legal Officer Paul Grewal stated that the firm proactively alerted U.S. authorities and emphasized that the company is not under investigation.

Coinbase is cooperating with the relevant authorities to help identify and prosecute those responsible. As part of this effort, data protection regulators in the U.K. and Ireland confirmed they have received Coinbase’s report and are currently reviewing the matter.

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