Coinbase Crypto asset Fraud Associated with Customer Information Breach in India

New insights into the Coinbase crypto scam situation indicate that the cryptocurrency exchange had been aware of the data breach for some time. As detailed in an article released on 3 May 2025 by Reuters, Coinbase has been conscious of the data leak since January.

TaskUs, a company specializing in outsourcing, is tied to this incident that could result in Coinbase incurring damages of up to $400 million. A 14 May 2025 filing with the SEC states that an employee in India captured images of her work computer with her personal phone, which contributed to the breach.

The Indian worker, along with a partner, was reportedly pilfering Coinbase customer information and selling it to hackers for profit. Coinbase was promptly informed once the wrongdoings came to light.

Following notification of the event, over 200 employees at TaskUs lost their jobs.

Important insights on the Coinbase KYC leak incident.

TaskUs, a US outsourcing firm, asserts that only two of its Indian personnel in Indore were responsible for the breach.

This further confirms that Coinbase was aware of the breach but failed to report it in a timely manner… pic.twitter.com/MhYpSFyWji

— Mikko Ohtamaa (@moo9000) June 3, 2025

In their statement, TaskUs remarked, “We suspect these two individuals were part of a larger, organized criminal effort targeting this client which also affected various other service providers.”

Previously, plaintiffs had initiated a class action lawsuit in a Manhattan court to establish a connection between TaskUs and the data leak last week.

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Understanding the Coinbase Crypto Scam

The situation escalated on 11 May 2025 when Coinbase received an anonymous message claiming to possess stolen customer data. The inquiry uncovered that hackers had bribed multiple employees to gain access to internal communications, data, and tools.

Subsequently, the hackers impersonated Coinbase staff and fooled users on the platform into relinquishing their crypto assets. They also demanded a ransom of $20 million from Coinbase to prevent the release of the stolen information.

In response, Coinbase took a firm stance and made the incident public. They pledged to reimburse those impacted and established a $20 million fund for individuals who aid in bringing the offenders to justice.

The digital currency trading network has reiterated to its users that soliciting passwords is not a part of its operational platform and has urged users to stay alert regarding this issue.

The potential $400 million in damages that Coinbase faces encompasses costs related to user reimbursements, breach mitigation, and legal expenses that the company may incur.

Interestingly, this isn’t TaskUs’s first encounter with allegations of a data breach. In 2022, Database, a crypto asset digital wallet producer, accused the firm of leaking sensitive data alongside Shopify.

The lawsuit indicated that both TaskUs and Shopify were aware of the data leak for over a week prior to notifying their clientele.

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Hackers Targeting Larger Exchanges

A report by Chainalysis revealed that approximately $2.2 billion worth of cryptocurrency was stolen from platforms in 2024. Hackers are becoming increasingly sophisticated and are now focusing on larger exchanges. Similar to how fraudsters impersonated Coinbase representatives, hackers in Australia were seen impersonating Binance representatives to infiltrate crypto wallets.

The approach was quite alike, prompting Australian authorities to initiate Operation Firestorm in partnership with international law enforcement agencies to apprehend the offenders.

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The article Coinbase Crypto Scam Linked to Customer Data Leak in India first appeared on 99Bitcoins.