Coinbase may owe customers up to $400 million after hackers steal confidential data.
And with ByBit being duped for $1.5 billion in March, this marks the second major centralized exchange exploit in two months. As such, traders are fleeing to secure self-custody crypto wallets like Best Wallet.
Coinbase Hackers Steal Customer Data
According to a Coinbase tweet, “rogue overseas support agents” handed over customer data, including names, addresses, emails, and official government documents, to hackers.
Coinbase revealed that less than 1% of monthly active accounts were compromised, and that no passwords, private keys, or funds were exposed.
Its CEO CEO Brian Armstrong publicly addressed the situation on X, revealing that the hackers have demanded a $20 million ransom. Rather than folding, Coinbase announced a $20 million reward fund that will pay anyone for information that leads to the hackers’ arrest and conviction.
He underlined that the hackers aimed to use the data for phishing scams. That is, to impersonate Coinbase support agents and trick users into handing over their funds or more valuable account information.
Armstrong said that Coinbase will reimburse any users who lost funds resulting from the hack. He estimates this could cost the company up to $400 million.
Coinbase’s stock dropped by 7.2% after news broke.
However, some critics are concerned that the ramifications of this exploit run deeper. Operational security (OPSEC) is crucial in crypto, and people can be targeted in real life if they are known to hold large amounts of digital assets.
Reuters reported that Ledger co-founder David Balland was kidnapped in France in January and held for ransom until he was rescued in a police operation, for example.
OPSEC-aware crypto users are well aware of this danger, and so are concerned.
“The combination of data exposed here (real-life addresses, crypto addresses, and amount and real-life ID documents) is lethal,” wrote Lefteris Karapetsas on X.
Meanwhile, Nansen AI CEO Alex Svanevik called for US President Donald Trump to “dismantle the KYC/AML complex.”
Dismantling KYC regulations would mean exchanges could hold less customer data, helping protect their privacy.
However, users can already protect their privacy through KYC-free crypto wallets. And right now, Best Wallet appears as one of the most secure options.
Best Wallet Brings Unmatched Security to the Wallet Space
Best Wallet is a KYC-free crypto wallet with a seamless user experience and market-leading security.
Being KYC-free means Best Wallet users retain complete privacy and hackers can’t steal their data.
But it doesn’t stop there. The wallet employs advanced fraud protection to help flag and block crypto scams. It also uses multi-level cryptographic technology for decentralized account recovery. This includes integrating support for Apple and Google accounts, so that users can easily retrieve access to their wallet, even without knowing their private keys.
When it comes to user experience, Best Wallet’s offerings go well beyond those of its peers. The wallet supports over 60 different blockchains, including Bitcoin, Ethereum, Solana, XRP, and Cardano. It also has a cross-chain DEX and even supports derivatives trading.
In addition, the wallet boasts features like a token launchpad, a crypto debit card, a staking aggregator, an NFT gallery, and more.
While making crypto much safer, Best Wallet also creates a seamless and frictionless user experience. It looks like it’s building the future of Web3.
$BEST Presale Soars Past $12M as Wallet Narrative Deepens
The Best Wallet Token offers ecosystem benefits, including trading fee discounts, higher staking yields, governance rights, and access to promotions on partner projects.
It’s currently available to buy via a token presale, which has raised $12.3 million so far.
Best Wallet Token’s presale strength signifies real market appeal, and the recent Coinbase incident will only amplify this in the months ahead.
Expert analyst Jacob Bury explored the Coinbase hack and suggested that Best Wallet Token could be a smart investment to capitalize on the current market outlook.
However, the $BEST presale price will increase throughout the ICO, with the next uptick in under two days.
As such, traders seeking the most value for money should not wait to get involved.
This article is for informational purposes only and does not provide financial advice. Cryptocurrencies are highly volatile, and the market can be unpredictable. Always perform thorough research before making any cryptocurrency-related decisions.