Hyderabad Police Arrest Ex-Coinbase Agent in Major Crypto Security Breach

Indian police have made a key arrest in a major international crypto investigation. Hyderabad Police arrested a former Coinbase customer service agent. The arrest is linked to a massive cyberattack on the exchange earlier this year.

Coinbase CEO Brian Armstrong publicly thanked the police. He confirmed the arrest in a post on social media. Armstrong stated the company has zero tolerance for criminal behavior.

He vowed to keep working with global law enforcement. The goal is to bring all responsible parties to justice. The CEO’s statement was reported by Bloomberg.

Details of the $400 Million Cyberattack Scheme

The arrest connects to a security incident first revealed in May. Hackers allegedly bribed contractors and employees. These individuals were located outside the United States.

Their goal was to steal sensitive customer data. The attackers subsequently made a huge ransom demand. They asked Coinbase for a payment of $20 million.

The company estimated the total impact could reach $400 million. They refused to pay the ransom demand outright. According to a BBC report, Coinbase promised full customer reimbursement instead.

The company also established a $20 million reward fund. This money is for information leading to convictions. They are cooperating with authorities worldwide.

Ongoing Law Enforcement Actions

This is not the only action related to the case. Coinbase has also filed charges against a man in Brooklyn. He is accused of running a long-running customer impersonation scheme.

The company spokesperson confirmed these coordinated efforts. The message is clear that such attacks will be pursued aggressively. Legal penalties for the perpetrators will be severe.

The arrest in Hyderabad marks a significant step in resolving the costly Coinbase security breach. It demonstrates increased global cooperation in tackling crypto-related cybercrime. This case underscores the critical need for vigilance in the digital asset space.