Coinbase reports hack of accounts of 6,000 customers

Karthik Subramanian

Coinbase, one of the largest crypto exchanges in the world, has reported that 6,000 customers accounts at Coinbase had been hacked which led to a loss of funds for the users which has since been fixed.

The hack is reported to have taken place between March and May of this year and had affected 6,000 accounts. It resulted due to an error in the SMS notification sent out for a wallet restore function where the SMS did not reach the intended recipient but was instead rerouted to the hackers’ numbers. This helped them to gain access to the user accounts and transfer their funds to those of the wallets owned by the hackers. The company said that it had since quickly fixed the bug, informed the users about the issue, restored the account access to the users, and also refunded the losses back to the clients.

Though the company has voluntarily come forward now to declare details of the hack, the fact that this has happened at a major exchange that has reported about it only several months later should come as a surprise to the crypto industry. Those sketchy details had emerged earlier, the details were not declared and the company was also not forthcoming at that time. It had to declare these details now as it has become a publicly listed company but critics would feel that this could have been handled in a better manner and the crypto community could have been taken into confidence about this breach which could have helped in recovering the funds and would have also helped the community to be richer by the experience.

The fact that the company has not helped to share this with the community and seeks its help should be a matter of concern for the crypto industry which thrives on community growth and help. Coinbase is already at loggerheads with SEC concerning some of its products like lending and the fact that it needs the help of the growing community of crypto users to indirectly pressurize the regulators to take initiative in regularising crypto-related business, should be realized by the company in the long run. This incident would also further dent the confidence that users have in centralized exchanges, where wallets and funds are controlled by the exchange, and push the case for DeFi and DEX further.

Read this next


Investors transfers $424 million out of bitcoin funds in six weeks

Despite bitcoin’s decent surge last week, which took the primary cryptocurrency up 70% from the year’s low, digital asset investment products saw outflows for the 6th consecutive week.

Digital Assets

OKX has $9 billion in ‘clean assets’, shows latest proof of reserves

OKX, formerly known as OKEx, has released its fifth proof-of-reserves report amid increasing demand of crypto investors asking for transparency from exchanges they trade with.

Digital Assets

Circle seeks France license to launch Euro stablecoin

Circle, the issuer of the second-largest stablecoin by market capitalization, is seeking to get a dual registration in France as it aims to on-shore its flagship product for the European market – EUROC – a reserve-backed stablecoin.

Digital Assets Among Minority of Successful Companies to Renew Coveted Estonian License has successfully renewed its virtual currency service license from Estonia’s FIU for the third year in a row, despite regulatory changes that have made it harder for virtual asset providers to meet the required standards.

Inside View, Institutional FX

Time for brokers to add options trading as volumes explode on high volatility

“Usually, adding options to the typical CFDs and equities offering leads to fragmentation of the platform technology as many brokers will need additional back-end and front-end components, and that could be an important barrier for them. Apart from that, legal hassle and costs associated with proper licensing of market data could be a barrier at first. We are seeing this trend among market data vendors and exchanges to make it easier and more affordable.”

Metaverse Gaming NFT

GCEX’s DeFi education and prime brokerage offering available in DubaiVerse

“We are excited to be part of the developments of The Sandbox and to join other top players in the region, including our regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), as part of the DubaiVerse. This is a great opportunity to bridge the gap between Web3 early adopters and GCEX clients, building a community around Web3 and digital assets.”

Digital Assets

Circle wants Fed to back USDC stablecoin after “very serious stress test” with collapse of SVB

The collapse of Silicon Valley Bank allegedly proves Circle’s point that there is a need for its USDC stablecoin to be backed by the U.S. Federal Reserve with its U.S. dollars held at the Fed.

Digital Assets

Google searches for and exploded by 300% amid FTX collapse

“The findings emphasize the importance of staying on top of market trends and being able to pivot strategies quickly and also offer valuable insights into the current state of the market and the behavior of traders, providing investors with valuable information to make informed decisions about their investments.”

Institutional FX

iS Prime reports £35m turnover, £16.2 million pre-tax profits, £37 cash balances

“We have plans in place to evolve the business over the next year, driving further growth for both iS Prime and for our clients.”