Crypto Coinbase’s firm says hackers stole customer information by bribing employees, requested payments of $ 20 million

Coinbase, the largest exchange of Cryptocurrency based in the US, said Thursday that criminals had obtained personal data improperly to Exchange customers to use in cryptor theft and were requesting a $ 20 million payment not to publicly release the information.

Coinbase General Director Brian Armstrong said in a post on social media that criminals bribed some of the company’s customer service agents living outside the US to submit personal data for clients, such as names, birth dates and partial social security numbers.

“(Stolen data) allows them to carry out social engineering attacks, where they can call our customers by imposing Coinbase customer support and try to cheat them in sending their funds to the attacker,” Armstrong said.

Social engineering is a popular strategy of revenge, as people tend to be the weakest link on every network. Many major companies have undergone hacks and data violations as a result of such fraud in recent years.

Coinbase did not specify how many clients had stolen their data or fell prey to social engineering fraud. But the company pledged to refund anyone who did.

In a submission to the Insurance and Exchange Commission, Coinbase estimated that it will have to spend between $ 180 million to $ 400 million “regarding repair costs and voluntary client refunds regarding this incident.”

SEC registration said the company had, “in the past few months,” revealed some of its customer service agents “entering into business without business.” Those employees were fired and the company said it increased its efforts to prevent fraud.

Coinbase said he received an email from attackers on Sunday demanding a $ 20 million reward of Bitcoin not to publicly release the client data they had stolen.

Armstrong said the company was refusing to pay the reward and, rather, would provide a $ 20 million gift for anyone who provided information that led to the arrest of the attackers.

“For these potential additives or anyone looking to damage Coinbase’s customers, I know we will prosecute you and bring you to justice,” Armstrong said. “And know you have my answer.”