US crypto exchange Coinbase hit by cyberattack

U.S.-based cryptocurrency exchange Coinbase has confirmed a cyberattack in which hackers stole partial customer data and demanded $20 million in ransom, Financial Times reported on Thursday.

Following the news, Coinbase shares fell 5.4% in early New York trading, reversing some of the 25% gains made earlier this week after the firm was added to a major U.S. stock index.

“The attackers sought access to our customer list in order to impersonate Coinbase and trick users into handing over their crypto assets. They later demanded $20 million to suppress the breach. We declined,” the company said in a statement.

Coinbase, headquartered in California, has offered a $20 million reward for information leading to the identification and prosecution of those responsible.

The company confirmed that only a portion of clients were affected. The breach included fragments of social security numbers, bank account details, and document copies such as passports and driver’s licenses. Passwords, keys, and funds remained secure. Coinbase said it would compensate users who suffered losses, estimating payouts between $180 million and $400 million.

The attack comes amid a wave of cyberattacks on high-profile firms worldwide, including Dior, Harrods, and Marks & Spencer.