DOJ launches investigation into Coinbase cyberattack: Bloomberg
Quick Take
- Last week, Coinbase disclosed an attack in which hackers attempted to extort $20 million using stolen customer data.
The cyberattack and subsequent ransom request on Coinbase are being investigated by the U.S. Department of Justice, including those in the department’s criminal division in Washington, Bloomberg reported Monday, citing a source familiar with the matter.
Last Thursday, Coinbase disclosed an attack in which a group of cyber criminals tried to extort $20 million from Coinbase to keep stolen customer data off the internet. The company said the incident could cost between $180 million and $400 million in expenses relating to remediation costs and voluntary customer reimbursements.
The attackers did not access any customer funds, private keys, or login systems, and the breach affected less than 1% of Coinbase users, the exchange said.
"We have notified and are working with the DOJ and other US and international law enforcement agencies and welcome law enforcement’s pursuit of criminal charges against these bad actors," Paul Grewal, Coinbase’s chief legal officer, told Bloomberg.
Wall Street analysts downplayed the incident, with many seeing the dip in Coinbase stock as a buying opportunity.
"While we regard any breach of an exchange’s internal systems as concerning, we also believe the details of the attack on COIN’s systems...make it appear more like a one-off event than a symptom of more pervasive security issues," Mizuho Securities analysts led by Dan Dolev wrote Friday in a note to clients.
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