Coinbase had prior knowledge of $400 million data breach - Reuters

EditorLouis Juricic
Published 06/02/2025, 03:06 PM
© Reuters

Investing.com -- Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange, was aware of a customer data leak at an outsourcing firm as early as January, according to Reuters, citing six sources familiar with the matter. The breach, which is connected to a larger security incident, is estimated to possibly cost up to $400 million.

The breach was publicly disclosed in a May 14 SEC filing. One component of the breach took place when an employee of the U.S. outsourcing firm TaskUs, based in India, was discovered taking pictures of her work computer with her personal phone, as per five former TaskUs employees.

Coinbase was promptly informed about the incident, according to three of the former employees and another source familiar with the situation. These individuals, who were briefed on the incident by company investigators or colleagues, noted that the woman and a suspected accomplice were believed to be providing Coinbase customer information to hackers for bribes.

Following the incident, over 200 TaskUs employees were terminated in a mass layoff that caught the attention of Indian media. Coinbase had previously attributed the breach to "support agents overseas" and estimated that it could cost up to $400 million.

The connection between TaskUs and the breach was previously suggested in a lawsuit filed last week in a federal court in Manhattan. However, these new details about the incident raise additional questions about when Coinbase first became aware of the situation.

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