Exchange scrambles to contain fallout from rogue agents as it offers $20M bounty and promises reimbursements.

Key Highlights:

• Coinbase has confirmed that rogue employees aided cyber criminals in stealing user data, triggering a breach that could cost the company up to $400 million.
• The platform says login credentials and private keys were not accessed, but customer names, addresses, IDs, and balances were compromised.

Yello ParadiseSquad! $400 million. That’s the price Coinbase may pay for trusting the wrong people. The company has confirmed that a group of support staff were “bribed and recruited” by cyber criminals, leading to a serious internal breach affecting a subset of its customers.

The attack didn’t stop at simple data leaks. These insiders helped steal names, emails, home addresses, government ID images, account balances, and corporate client data. Fortunately, login credentials, private keys, and two-factor authentication codes were not compromised, but the damage is far from contained.

Coinbase now says it will reimburse users who were tricked into sending funds as a result of this breach—echoing claims by on-chain sleuth ZachXBT, who previously estimated $300 million in losses linked to social engineering scams targeting Coinbase users.

Swift Fallout, Criminal Charges, and a $20M Bounty

In a rare display of speed, Coinbase immediately fired the rogue staff and has vowed to pursue criminal charges both in the U.S. and abroad. To catch the perpetrators, the exchange is offering a $20 million bounty to anyone who provides actionable intel that leads to arrests.

The attack represents one of the costliest social engineering breaches in crypto history, and casts a heavy shadow over centralized support systems that handle sensitive user data.

Coinbase has not clarified how the bribery occurred or which departments were compromised, but the messaging is clear: customer trust is under siege, and the bill is enormous.

If You’re Still Using Coinbase, Think Twice

We’ve said it before—and it couldn’t be clearer now: centralized exchanges with bloated corporate structures are security liabilities, not safeguards.

That’s why we continue to recommend KCEX, MEXC, and BingX as safer, smarter alternatives for active traders and crypto investors. These platforms offer tight security, responsive teams, and robust compliance frameworks without putting your data in the hands of rogue insiders.

We’ll break down exactly how the breach happened, what you can do to protect yourself, and which exchanges are structurally safer in our next YouTube stream, with full incident analysis sent to ParadiseFamilyVIP members.

Join MCP News Private for just $3/month to stay ahead of exchange-level risks, security red flags, and smarter platform strategies.

Because in a world where the people protecting your data can be bribed, your best defense is choosing better platforms before it’s too late.