Coinbase hack dents crypto’s trust

Coinbase launched with a huge bang on the Nasdaq technology exchange back in 2021. That stock listing coincided with a then highest listing for Bitcoin of around $50,000. In November of the same year, the ATH was reached.

Nasdaq

Coinbase shares melted like snow in the sun in the disastrous crypto year 2022, but started to straighten their backs again in 2023. 2024 was a nice return to the tops, but despite the fact that Bitcoin has already reached a price of $100,000 since then, Coinbase shares could never match the ATH price tag of 2021.

Earlier this week there was good news for Coinbase as the shares are expected to be included in the S&P 500. However, on Thursday the company had to admit it had fallen victim to a phishing scam.

Kidnapping

Hackers had bribed several Coinbase customer service employees overseas to obtain customer data. An email was then sent to Coinbase CEO Brian Armstrong demanding a payment of $20 million in exchange for the data.

“Armstrong refused, offered a $20 million bounty for the hackers’ data, and decided to compensate the victims of the hack.”

The cost for Coinbase will likely be between $180 and $400 million.

However, the fact that Coinbase’s customer data is so easily available and that many wealthy Coinbase customers now have to fear kidnapping and extortion is quite worrying for the cryptosphere.