Coinbase, America’s largest cryptocurrency exchange, which spends millions of dollars monthly on security, recently witnessed a major data breach that impacted more than 69,000 users. The losses are estimated to be over $400 million, and Coinbase has offered a $20 million bounty to catch the culprits.
Unlike usual hacks that loot your funds directly from the wallet through private keys, the Coinbase breach looted user data such as name, date of birth, address, email, government ID used for KYC, and details like transaction history.
This article covers how stealing these details can be more dangerous than a regular hack, and provides ways to check if you are a victim of the breach. Additionally, the article delves into security measures that one can take to avoid similar issues.
How the Coinbase Data Breach was Executed?
Since January 2025, an outsourcing company’s some of the employees have been taking data from Coinbase users and selling them to a scammy network that connected them via Telegram. After becoming aware of the issue, TaskUS, the outsourcing firm, fired more than 200 Indian-based employees, drawing media attention.
Coinbase clarified to the U.S. Securities and Exchange Commission that they were aware that the outsourcing firm accessed their data “without business need” but in May 2025 only they realized that it was a part of a wider data breach. Coinbase immediately cut ties with TaskUS and enhanced their security. However, the stolen data is still with the scammers.
What was Included in the Coinbase Data Breach?
No passwords, private keys, or seed phrases are leaked in the hack. With the help of the alleged TaskUS employees, the hackers created a customer list that includes users’ personal data such as:
- Name, address, phone, and email.
- Government-ID images (e.g., driver’s license, passport).
- Masked Social Security (last four digits only).
- Account data (balance snapshots and transaction history).
- Masked bank account numbers and some bank account identifiers.
- Limited corporate data (including documents, training material, and communications available to support agents).
How to Check If You’re a Victim of the Coinbase Breach?
If your data was a part of the breach, you have already received an email from Coinbase ([email protected]), as a warning about the hack. If you got the mail, you will now need extra ID checks and security criteria to access your account and to withdraw the funds.
Beyond giving impact notices to the affected users, Coinbase has increased the allocation for insider-threat detection and announced a $20 million reward fund to those providing information leading to the attackers.
How to Protect Yourself From a Coinbase Data Breach?
Since the hackers have your information, there is a higher chance that they will impersonate Coinbase employees and trick you into moving your funds to their wallets. Be aware that Coinbase will never call, text, or mail you to give you a new wallet address or seed phrase. Don’t fall for this deception, and follow the steps below for additional security.
- You can turn withdrawal allow-listing on to limit your transfers to wallets that you are in control of or you are confident enough to transfer.
- For a strong 2FA while transferring, using hardware keys is preferred.
- Always ensure that the emails you receive are from the official Coinbase.
- Regularly review your current security and always check for any issues.
Also Read: Bitcoin Miners Face Legal Challenge Over ECC Patent Infringement
Final Thoughts: How to Avoid Future Hacks Like This?
The Coinbase data breach again emphasizes that centralized exchanges, even the most trustworthy ones, are not safe compared to decentralized exchanges. To avoid future hacks like this, you need higher security for your funds, which can only be achieved by moving the crypto into a private wallet independent of exchanges. Whether it’s a DEX or CEX, try to do maximum research before engaging with the platform. Always DYOR!