Coinbase Rejects $20 Million Ransom, Offers Bounty for Cybercriminals’ Arrest

Giant company Coinbase Rejects $20 Million Ransom, Offers Bounty for Cybercriminals’ Arrest

Cryptocurrency exchange Coinbase has refused to pay a $20 million ransom.

This is demanded by cybercriminals who threatened to leak sensitive customer information.

Instead, the company has offered the same amount as a reward for information leading to the attackers’ capture.

In a detailed blog post released on Thursday, Coinbase disclosed that a group of overseas support agents had been bribed to leak customer data.

This including names, addresses, partial bank details, and identification documents.

The company clarified that no passwords, private keys, or funds were compromised.

They say that accounts on its institutional service, Coinbase Prime, remained secure.

Following the breach, the criminals issued a $20 million ransom.

They demand in Bitcoin, warning they would publish the stolen data if their demands weren’t met.

“We refused,” Coinbase stated. In a video message referenced by the company, CEO Brian Armstrong firmly rejected the extortion attempt, declaring, *“We are not going to pay your ransom.”

Coinbase takes a strong move on this and doesn’t allow intimidations

Taking a bold counter-approach, Armstrong announced a $20 million bounty for information.

The information that leads to the identification, arrest, and conviction of those responsible for the attack  a tactic reminiscent of the plot of the 1996 thriller Ransom.

“This issue is rampant in the industry and is only escalating,” said Philip Martin, Coinbase’s Chief Security Officer, in an interview with Fortune.

He confirmed the compromised employees, all based in India, have been dismissed.

Martin also revealed the attackers made it clear they intended to publish the stolen data if the ransom was not paid.

“The immediate reaction from everyone when we learned about the extortion was a resounding ‘absolutely not,’” he said.

Coinbase Rejects $20 Million Ransom

Coinbase noted it is actively collaborating with law enforcement agencies, has flagged the attackers’ cryptocurrency wallet addresses.

The company pledges to reimburse any customer who may have suffered losses as a result of related social engineering schemes.

In response to the incident, the company is accelerating plans to establish a new customer support hub in the United States and has strengthened its internal access controls.

In a defiant closing statement, Armstrong warned the perpetrators: “We will prosecute you and bring you to justice. Now you have my answer.”

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