Ex-Coinbase Employee Arrested in India Over $400M Heist

Coinbase data breach cybersecurity crypto exchange security India arrest data theft ransom demand

Govind Kumar

Co-founder/CPO

December 29, 2025 2 min read

TL;DR

Coinbase has arrested a former employee in India implicated in a customer data breach. The incident involved bribed support agents accessing sensitive user information, followed by a $20 million ransom demand that Coinbase refused. While no customer funds were stolen, the company expects remediation costs to reach $400 million, highlighting ongoing cybersecurity vulnerabilities in the crypto space.

Coinbase Ex-Employee Arrested in India Following Data Breach

Coinbase CEO Brian Armstrong announced the arrest of a former Coinbase customer service agent in India in connection to a data breach that occurred earlier this year. The breach involved the theft of customer data and a subsequent ransom demand.

Details of the Hack

In May, criminals bribed Coinbase support agents to release sensitive customer information, including home addresses, bank details, and user ID photos. The hackers then demanded $20 million for the return of the data. Coinbase refused to pay the ransom, and no customer funds were reported stolen.

Impact and Remediation Costs

Coinbase estimates that the incident will cost the company up to $400 million to remedy. A legal filing revealed that almost 70,000 users had their data compromised in December, with the breach discovered on May 11.

Company Response

Armstrong stated, "We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice." The Coinbase CEO also thanked the Hyderabad Police in India for their assistance in the arrest.

Implications for Cybersecurity

The May hack demonstrates that even major cryptocurrency exchanges like Coinbase are vulnerable to cyber attacks. The incident has raised questions about employee vetting processes within the company. Despite the breach, Coinbase maintains that no private keys or customer funds were directly compromised.

GrackerAI automates your cybersecurity marketing

GrackerAI automates your cybersecurity marketing: daily news, SEO-optimized blogs, AI copilot, newsletters & more. Start your FREE trial today! GrackerAI

Enhancing Omnichannel Strategies with Engaging Video Content

Discover how Connected TV (CTV) is revolutionizing omnichannel marketing. Learn strategies to integrate CTV for amplified reach and engagement. Boost your campaign performance today!

By Deepak Gupta January 20, 2026 6 min read

B2B cybersecurity marketing

2025 B2B Cybersecurity Marketing Trends & Digital Transformation Insights

Discover key B2B cybersecurity marketing trends for 2025, including shifts in customer acquisition, GEO optimization, and digital transformation insights. Boost your strategy today!

By Hitesh Kumawat January 19, 2026 3 min read

AI marketing

Marketing Leaders' Predictions: Key Trends for 2026

Navigate the evolving AI marketing landscape of 2026. Discover essential strategies, the rise of AI shopping agents, search decentralization, and how to cut through the noise. Get ahead – read now!

By Diksha Poonia January 16, 2026 3 min read

AI skills certification

Irish EdTech Firms Secure €1M and €26M for AI Skills and Growth

Irish startup AICertified secures €1M to create a unified, trusted standard for AI skills certification. Discover how they're tackling the fragmented AI training market. Learn more!

By Hitesh Kumar Suthar January 15, 2026 3 min read