Coinbase got hit by hackers last week, and it’s looking pretty bad. The company might lose up to $400 million. That’s a lot of money! They told everyone about this on Monday when they updated their earlier report. At first, they thought only a few accounts were broken into. Now they know it’s much worse.
The hackers got into about 450 accounts. These weren’t just regular people’s accounts. They belonged to big companies that use Coinbase for business. The attack happened on October 31st. Hackers used something called a “SIM swap” trick to break in. They basically hijacked someone’s phone number to get past security.
“We discovered unauthorized access to a small number of accounts,” said Coinbase in their statement. They’re working hard to make things right. The company promised they would pay back any money that was stolen. That’s good news for the account holders who lost funds.
This isn’t the first time Coinbase has been attacked. Back in 2022, they got hacked too. That time, around 6,000 customers lost money. The crypto world is always a target for hackers because once money is stolen, it’s really hard to get back.
The attack comes at a tricky time for Coinbase. The crypto market has been jumping up and down like crazy. Bitcoin reached record highs after Donald Trump won the election. Then it dropped again. All this drama makes investors nervous.
Coinbase’s stock price fell by 10% when they announced the hack. That shows how worried people are. Even though $400 million is a lot, Coinbase says they have over $12 billion in cash and crypto. So they can handle the loss without going broke.
“Security is our top priority,” said Paul Grewal, Coinbase’s legal chief. “We are taking immediate steps to strengthen our systems.” The company is working with law enforcement to try to catch the hackers. They’re also checking all their security to prevent future attacks.
The attack used something called “social engineering.” This means the hackers tricked people to gain access. They didn’t actually break Coinbase’s computer systems. Instead, they fooled mobile carriers into giving them control of an employee’s phone number.
This hack shows how even big companies with strong security can still get attacked. Coinbase is one of the most trusted crypto exchanges in the world. They’re listed on the stock market and follow strict rules. Yet they still got hit.
For regular crypto users, this is a wake-up call. If you own Bitcoin or other cryptocurrencies, make sure you use extra security. Turn on two-factor authentication that doesn’t rely on text messages. Use authentication apps instead. And consider keeping your crypto in a hardware wallet for the best protection.
Coinbase says they’re reviewing all their security processes. They want to make sure this kind of attack can’t happen again. The company is also reaching out to all affected customers. They promise to make the situation right as quickly as possible.
The crypto world is watching this situation closely. How Coinbase handles this attack will affect trust in the whole industry. So far, they’ve been open about what happened. That’s a good first step in rebuilding confidence.
For now, Coinbase customers should keep a close eye on their accounts. If you notice anything strange, contact Coinbase support right away. And remember, in the crypto world, security is everyone’s responsibility. Stay safe out there!
