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Bitcoin and Coinbase Join Forces Against Cybercrime: A $20 Million Reward Offered

In a bold move against cybercrime, Coinbase has announced a $20 million bounty program following an extortion attempt involving stolen user data.

The U.S.-based cryptocurrency exchange revealed that hackers had illegally obtained account data from less than 1% of its monthly users.

These criminals bribed offshore support representatives, gaining access to sensitive customer information before demanding a ransom of $20 million worth of Bitcoin.

Coinbase emphasized that no passwords, private keys, or funds were compromised during the breach, ensuring that Coinbase Prime accounts remained unaffected.

The company declared, "We will not pay the racketeers" and instead opted to reward those who assist in identifying and convicting the perpetrators.

Coinbase has reported the incident to law enforcement and has committed to refunding affected users, though it has not specified the number of impacted accounts.

This latest attack underscores the growing risks associated with insider threats and social engineering, particularly within the cryptocurrency sector.

Recent reports from blockchain researcher ZachXBT indicate a surge in social engineering scams targeting Coinbase customers, resulting in significant financial losses.

In response to these threats, Coinbase is reinforcing its internal security measures and advising users to be cautious of unsolicited communications.

As criminals become more sophisticated, the ongoing vigilance of companies like Coinbase is essential for the safety and security of their users.