Top US Crypto Exchange Estimates Recent Cyberattack Costs Could Hit $400 Million: Our Response to Cybercrime

The leading cryptocurrency exchange in the U.S. estimates that cyber attacks compromising account information for a “small subset” of users will incur costs ranging from $180 million to $400 million. Coinbase noted that this estimate does not factor in the $20 million ransom demanded by hackers, which the firm opted not to pay.

As the largest platform for cryptocurrency transactions in the United States, Coinbase reported that while attackers accessed sensitive information like names, addresses, and emails, they did not acquire login credentials or passwords. Nevertheless, the company is refunding customers who were tricked into sending funds to the attackers.

The hackers engaged various contractors and employees based outside the U.S. to extract information from internal systems. In response, Coinbase promptly terminated the implicated employee.

Furthermore, Coinbase has also declined to pay the ransom and is actively collaborating with law enforcement. Instead, they have offered a $20 million reward for information regarding the perpetrator.

“We are committed to investigating this case, enhancing security measures, and providing reimbursements to affected customers instead of funding criminal activities,” the company stated in its blog post.

On May 11, the company received an email from an unidentified threat actor claiming to possess information about certain customer accounts and internal documents. This revelation comes just days before Coinbase is poised to enter the Benchmark S&P 500 Index, representing a historic milestone in the cryptocurrency sector.

Security remains a significant issue for the cryptocurrency industry. In February, BYBIT, the second-largest cryptocurrency exchange globally, disclosed that an attacker had stolen approximately $1.5 billion worth of digital tokens.

In 2024, the total amount of funds stolen from hacking of cryptocurrency platforms reached $2.2 billion, according to a report from the blockchain analytics firm Chain Orisys. This marks the fourth year in a row that such hacks have surpassed $1 billion.