Outsourcing Nightmare: Former Coinbase Employee Arrested in India over Massive Crypto Hack

Breitbart ^ | 12/28/2025 | Lucas Nolan

[DFG]

Coinbase CEO Brian Armstrong has announced that a former customer service agent has been arrested in India in connection with a major security breach of the crypto trading platform that occurred in May.

Bloomberg reports that Coinbase CEO Brian Armstrong has revealed that a former customer service agent for the US-based crypto exchange has been arrested in India. The arrest comes months after hackers successfully bribed Coinbase contractors or employees outside the United States to gain unauthorized access to sensitive customer information, a nightmare scenario for American companies that outsource operations to third world countries like India.

The security breach, which took place in May, sent shockwaves through the crypto community as Coinbase, the largest US crypto exchange, found itself at the center of a major controversy. The hackers, after obtaining the stolen customer data, demanded a $20 million ransom from the company. At the time, Coinbase estimated that the incident could cost up to $400 million to remedy, highlighting the severity of the breach and its potential financial impact on the company.

While the identity of the arrested former employee has not been disclosed, the development marks a significant step forward in the ongoing investigation into the security breach. The arrest is expected to shed light on the hackers’ modus operandi and potentially lead to further arrests and the recovery of stolen customer information.

The incident has raised serious questions about the security measures employed by Coinbase and other crypto exchanges, especially when it comes to protecting sensitive customer data. The fact that hackers were able to bribe employees or contractors to gain access to such information highlights the need for more robust security protocols and stricter background checks for individuals handling sensitive data.

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TOPICS: Business/Economy
KEYWORDS:

[Presbyterian Reporter]

“”””The arrest comes months after hackers successfully bribed Coinbase contractors or employees outside the United States to gain unauthorized access to sensitive customer information, a nightmare scenario for American companies that outsource operations to third world countries like India.”””

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Hey, I have a great idea.

Let’s digitize everything under the sun with AI so the hackers have more sensitive information to steal.

[Cronos]

The guy was a former employee - so this was about offshoring not outsourcing

[cgbg]

Remember:

Crypto is safe—because of blockchain.

Promise.

Lol.

[equaviator]

Supplier/customer info may include proprietary 3D CAD models of products and tools. Who needs blueprints when you have access to the models themselves? Bills of material, design & manufacturing notes, product revisions and supplemental technical documentation such as GD&T and specifications usually accompany the models as CAD packages, and as long as you have the models with their parameters intact, drawings can be created with sections, views, dimensions and tolerances. Even if parameters have been removed, there is the capability of some CAD applications to measure model features. If Product Life-cycle and Product Data Management files (e.g., PLM/PDM using Teamcenter) are vulnerable to overseas hacking then that would be a major security issue.

[equaviator]

Outside of the cryptocurrency industry, that is. Automobiles, motorcycles, computer hardware, etc.

[catnipman]

“and the recovery of stolen customer information.”

yeah, right, hacked information like that is NEVER “recovered: it just keeps being replicated over and over again until it’s no longer worth anything ... even if a ransom is paid, it’s STILL out there somewhere ... a single payment is NEVER enough for an extortionist ... better to use the money to track down and kill the extortionist, which even then is just a revenge tactic ...

[sten]

To use coinbase you have to ship your crypto to the digital wallet held by coinbase. Just like depositing your gold coins into a safety deposit box.

The block chain is safe... the crypto is stolen from the company wallets.

This is exactly the same as having your gold coins stolen from the safety deposit box as thieves break into the bank and steal the contents.
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