Coinbase Refuses Ransom, Compensates Users in Data Breach

2 mins mins

Key Points:

Coinbase faces a massive data breach and refuses to pay ransom.
$20 million reward for breach information.
Compensation offered to affected users by Coinbase.

Coinbase has announced a $20 million reward for information leading to the identification of cybercriminals behind the recent data breach, reported on May 15, 2025. This breach involved overseas employees leaking sensitive customer data.

The breach highlights vulnerabilities in data security and poses risks of extortion attempts against crypto users. Immediate actions include Coinbase’s refusal to meet ransom demands and their initiative to reward helpful leads.

Coinbase’s $20 Million Breach Reward Initiative

Coinbase’s breach was executed by overseas agents bribed to extract and leak data. The company rejected the $20 million ransom and has now activated a $20 million reward scheme to help track the perpetrators. Coinbase also plans to reimburse users who fell victim to phishing attacks resulting from this breach.

Brian Armstrong, Coinbase CEO, confirmed the company’s staunch refusal to pay the ransom and outlined the plans to strengthen data security measures. The breach prompted involvement from the U.S. Department of Justice, marking a serious investigation into securing data.

Brian Armstrong, CEO, Coinbase, mentioned in a social media post, “Hackers requested a $20 million ransom from the firm.”

Data Security and Legal Actions Intensified

Did you know? In previous years, Coinbase faced only minor hacking attempts, making this breach unprecedented in scale and response strategies.

Bitcoin (BTC) currently trades at $107,033.22, reflecting a 1.50% increase over 24 hours. With a market cap exceeding $2.13 trillion, Bitcoin dominates 63.24% of the market. Trading volume was recorded at $53.60 billion, and circulating supply stands at 19,867,484 BTC, according to CoinMarketCap.

bitcoin-daily-chart-1038 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 20:52 UTC on May 20, 2025. *Source: CoinMarketCap*

Coincu research indicates this breach could drive stricter regulations and improved technological defenses within crypto exchanges. Data shows increased vulnerability exposure, intensifying calls for enhanced cybersecurity protocols among key players.