Coinbase CEO Says Company Won’t Pay Hackers’ Ransom

Coinbase CEO Brian Armstrong mentioned in a social media publish Thursday {that a} ransom word arrived through electronic mail asking for $20 million in Bitcoin in trade for not releasing info hackers had obtained on Coinbase’s prospects.

“I will reply publicly,” Armstrong mentioned. “We aren’t going to pay ransom.”

https://t.co/evpIBMFvRW pic.twitter.com/f6UPdkL5R0

— Brian Armstrong (@brian_armstrong) Might 15, 2025

Armstrong mentioned attackers had discovered a “weak hyperlink” customer support agent outdoors the U.S. who accepted a “bribe” and gave away private knowledge on prospects.

In an organization weblog publish, Coinbase mentioned it would reimburse prospects tricked into sending funds to the attacker. Hackers obtained entry to names, addresses, telephone numbers, and emails; masked Social Safety numbers (final 4 digits solely); masked financial institution‑account numbers; and authorities‑ID photos (driver’s licenses, passports). No passwords or non-public keys have been obtained, the corporate says. The e-mail arrived on Sunday.

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“(The stolen knowledge) permits them to conduct social engineering assaults the place they will name our prospects impersonating Coinbase buyer help and attempt to trick them into sending their funds to the attackers,” Armstrong mentioned.

Per the AP, Coinbase estimated in a submitting with the SEC that it may find yourself spending wherever between $180 million and $400 million “referring to remediation prices and voluntary buyer reimbursements referring to this incident.”

In the meantime, the New York Occasions experiences that the SEC is individually investigating Coinbase over whether or not or not it reported inaccurate numbers throughout its IPO in 2021. The corporate claimed to have greater than 100 million “verified customers” in advertising and marketing supplies.

Coinbase’s inventory dropped 7% on Thursday after the information, per Yahoo.

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