Former Coinbase Customer Service Employee Arrested by Indian Police in First Arrest Related to Internal Data Leak Case

According to reports, Indian police have arrested a former Coinbase customer service employee in Hyderabad, who is suspected of involvement in the internal data leak incident disclosed by Coinbase in May this year. This is the first known arrest in the case, confirmed by Coinbase CEO Brian Armstrong. The incident dates back to December 2024, with investigations revealing that cybercriminals obtained access to internal systems by bribing overseas customer service employees, stealing sensitive information of 69,461 users, including names, addresses, phone numbers, emails, and government-issued identification documents. Coinbase stated that the attackers attempted a $20 million ransom, which the company refused to pay, instead setting up a reward program of equal amount to track down and arrest those involved. In its second-quarter financial report, Coinbase disclosed that the incident has resulted in $307 million in related expenses, covering user compensation, legal fees, and security upgrade costs. Additionally, Coinbase is currently facing a collective shareholder lawsuit, accusing the company of failing to timely disclose the incident, misleading investors. Coinbase has stated its cooperation with international law enforcement agencies in the investigation, hinting at possible further arrest actions in the future.

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