Coinbase Data Leak Tied to India-Based Contractor, 70,000 Users Affected

Coinbase has found itself in hot water again, but this time it has nothing to do with market volatility or regulators. A data breach affecting tens of thousands of customers has been linked to one of its third-party support vendors in India, according to sources familiar with the matter. No money was stolen in the Coinbase data breach, but the leaked data could be used in phishing scams or identity theft.

The Inside Job That Set It Off

The breach allegedly began when a support agent working for TaskUs, a global outsourcing company contracted by Coinbase, snapped photos of internal customer service tools. These tools gave the agent access to user data, including names, email addresses, and possibly even transaction histories. That data didn’t stay internal for long. Reports claim it was passed on to external actors, possibly in exchange for money.

Major security breach continues to shake Coinbase !

New report reveals the crypto giant knew about a data leak some four months before hackers demanded $20M, exposing sensitive user info.

The breach, linked to TaskUs employees in India, raises concerns as wealthy crypto…

— Bitcoin.com News (@BTCTN) June 3, 2025

This wasn’t a one-off incident either. A second agent is suspected to be involved, raising red flags about how widespread the internal abuse may have been. Investigators believe the leak was orchestrated and deliberate, intending to profit off the compromised information.

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Coinbase Responds to the Fallout

Once Coinbase became aware of the breach, it terminated its relationship with TaskUs and began taking drastic steps to tighten its customer support operations. The company said it cut off access to several third-party vendors and is now investing in building a fully US-based support team.

The breach has impacted around 70,000 users, as disclosed in Coinbase’s filing with the SEC. In a particularly tense twist, the bad actors demanded a $20 million ransom not to leak or sell the data. Coinbase refused, opting instead to cooperate with law enforcement and offer a bounty for information leading to those responsible.

How Bad Is It?

So far, there’s no public evidence of funds being stolen. But that doesn’t mean the damage is minor. With enough personal information exposed, scammers can run phishing attacks, impersonate Coinbase, or attempt identity theft.

Internally, Coinbase estimates the financial cost of the incident could land between $180 million and $400 million. That is a massive hit for any company, let alone one that is already juggling increased regulatory pressure and fluctuating market conditions.

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A Larger Problem for the Crypto Industry

Outsourcing isn’t new, especially for companies that operate globally and need customer support around the clock. But incidents like this show the risks of relying on third-party contractors with access to sensitive tools and data. Even one bad actor can unravel a lot when your brand’s entire promise is built around trust and financial security.

Coinbase is now being looked at more closely by regulators and users who expect better safeguards. It has promised greater oversight, transparency, and a stronger internal security culture.

The Takeaway

This breach reminds us that security lapses don’t always come from hackers in hoodies. Sometimes, the threat is sitting behind a customer support dashboard. In an industry built on digital trust, that’s a risk no company can afford to overlook.

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