The Coinbase breach affected nearly 70,000 users of the cryptocurrency exchange. A former Coinbase customer service agent in India who allegedly helped hackers steal sensitive customer information from its database was arrested in India. Coinbase CEO Brian Armstrong said in a post on X on Dec. 26 that more arrests are to come. “We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice,” Armstrong posted.
Thanks to the Hyderabad Police in India, an ex-Coinbase customer service agent was just arrested. Another one down and more still to come. These support agents allegedly gave access to hackers as part of a May 2025 incident in which hackers demanded a $20 million ransom in exchange for not publicly leaking stolen customer data, according to Bleeping Computer. As Mashable reported at the time, Coinbase said the hackers obtained names, addresses, phone numbers, email addresses, masked bank account numbers, photos of government IDs, and the last four digits of customers’ social security numbers.
On top of that, the hackers also accessed account data, including balance snapshots and transaction history. Despite this, Coinbase refused to pay the $20 million ransom, instead offering a $20 million reward fund for anyone providing information on the people responsible for the breach. At this time, it’s not clear if the reward fund played a role in the recent arrest in India. An Indian police operation led to the arrest of a former Coinbase customer service agent suspected of aiding hackers in a May 2025 ransomware attack.
The breach affected nearly 70,000 Coinbase users, exposing names, addresses, phone numbers, email addresses, masked bank account numbers, photos of government IDs, and the last four digits of customers’ Social Security numbers, as well as balance snapshots and transaction history. Coinbase did not pay the $20 million ransom, instead launching a $20 million reward fund for information on those responsible. Coinbase CEO Brian Armstrong said on X that the company has zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice. The arrest was facilitated by the Hyderabad Police in India, with Coinbase noting that more arrests are anticipated.
Reports from Bleeping Computer and Mashable described the May 2025 incident and the scope of data exposure. At this time, it is unclear whether the reward fund influenced the investigation or arrest. The case underscores ongoing security risks facing crypto exchanges and highlights the role of insider access in major data breaches.
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