Sequoia Capital Exec Among Victims in Coinbase Data Breach as Hackers Demand $20M
Coinbase Security Crisis Deepens With Top Venture Capitalist Targeted
Roelof Botha, managing partner at Sequoia Capital, has been named among the victims of a targeted data breach at Coinbase, exposing the vulnerability of even high-profile individuals to sophisticated cybercrime operations. The breach, which Coinbase revealed affected less than 1% of its monthly active users, has sent ripples through the crypto industry.
According to Bloomberg on May 16, Botha’s account details were compromised after cybercriminals bribed Coinbase support staff to gain unauthorized access to sensitive user information. Though Botha’s exact holdings are undisclosed, estimates place his net worth in the hundreds of millions, raising concerns over what data may have been accessed or potentially stolen.
$20 Million Ransom Rejected by Coinbase
Coinbase confirmed in a May 15 blog post that it had been the target of a social engineering campaign. Criminals exploited internal weaknesses, bribing customer service agents, and gained data that allowed them to launch phishing attacks on several users.
The attackers reportedly demanded a $20 million ransom, threatening to publicly disclose the stolen data if Coinbase didn’t comply. The company declined to negotiate. The full extent of the breach remains unclear, but it is believed that similar tactics were used against users of Binance and Kraken, although neither exchange has confirmed this publicly.
Indian Support Agents Fired, Damages Could Reach $400M
Coinbase’s Chief Security Officer, Philip Martin, revealed that the bribed support agents were contracted personnel based in India, who have since been terminated.
In a filing with the U.S. Securities and Exchange Commission (SEC), Coinbase estimated that total remediation and reimbursement costs could range between $180 million and $400 million. The disclosure sent shockwaves through the market, with Coinbase shares (COIN) dropping over 7% to $244. As of publication, COIN stock had slightly recovered to $264.24.
Coinbase CEO Presses for Crypto Reform in DC
Amid the fallout, Coinbase CEO Brian Armstrong was seen lobbying in Washington, D.C., advocating for crypto-friendly legislation. Congress is preparing to vote on a stablecoin regulation bill, while a broader digital asset market structure framework is under review in the House of Representatives.
As trust in centralized platforms comes under renewed scrutiny, this incident underscores the urgent need for regulatory clarity and stronger security controls in the digital asset space.
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