Coinbase claims arrest in the $355 million insider extortion scheme that targeted nearly 70,000 customers
Coinbase announced the arrest of a former support agent in India related to a $355 million insider extortion scheme affecting almost 70,000 customers.Summary
Coinbase CEO Brian Armstrong confirmed the arrest of a former customer support agent in India in connection with an insider bribery and customer data theft scheme. The incident, described to regulators as an extortion attempt using insider access, involved stolen customer information used for social engineering against nearly 70,000 customers. The breach date was listed as December 26, 2024, with wrongdoing discovered on May 11, 2025. Coinbase has recognized $355 million in costs across Q2 and Q3 2025 related to remediation and reimbursements for affected customers. The scheme involved bribing or recruiting support personnel to access internal tooling, highlighting operational security risks related to identity, access, and human workflows, which can lead to account takeovers even if core crypto infrastructure remains secure.
(Source：CryptoSlate)