**Coinbase Customer Data Breach Involves Insider Trading; Potential Compensation Up to $400 Million**
In a recent data breach at the U.S. cryptocurrency exchange Coinbase, hackers accessed certain personal information of users, including names, email addresses, phone numbers, and ID details. However, passwords, personal keys, and financial losses were reportedly not compromised. It was revealed that an insider, now dismissed, facilitated access to this information by being bribed by the hackers.
According to Coinbase’s Chief Security Officer, Philip Martin, the insider involved has been identified as of Indian nationality and is no longer with the company. The breach has prompted an investigation by the U.S. Securities and Exchange Commission (SEC) to determine the full scope of the impact.
Coinbase has pledged to compensate those affected by the breach, with total compensation potentially reaching up to $400 million. CEO Brian Armstrong stated that the hackers demanded $20 million. The company has acknowledged during the SEC filing that costs associated with the compensation could be as much as $400 million.
On the broader regulatory front, a separate legal issue involving the SEC and Ripple saw a U.S. court dismiss a proposed settlement. The SEC had attempted to lower the penalties imposed on Ripple and lift restrictions on XRP sales, but the court found the settlement procedures inadequate.
Amid these developments, there is growing consensus on the importance of regulatory clarity and financial institution involvement in the growing stablecoin market. At the ‘Consensus 2025’ event in Toronto, Paypal’s blockchain head José Fernández da Ponte emphasized the necessity of bank participation for the success and enlargement of the stablecoin market.