Coinbase confirms arrest in India in connection with data breach at cryptocurrency exchange

A former customer service representative associated with Coinbase Global Inc. has been arrested in India as part of an ongoing investigation into a data breach at the cryptocurrency exchange. Coinbase CEO Brian Armstrong confirmed the development on social media and thanked the Hyderabad Police for their assistance.“We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice,” Armstrong said via a post on his social media platform X (formerly known as Twitter).

“Thanks to the Hyderabad Police in India, a former Coinbase customer service representative has just been arrested. One more has gone missing and more are on the way,” he added.

The arrest follows earlier revelations from Coinbase that hackers had bribed contractors and employees outside the United States to gain access to customer data. In May, the company announced that the attackers were demanding a ransom of $20 million.

The breach was one of the most high-profile security incidents to impact a crypto trading platform.

Coinbase had estimated at the time that the total cost of addressing the breach could be as much as $400 million. According to reports from Bloomberg, a Coinbase spokesperson confirmed the arrest in India and said it follows recent action in the United States. The company had previously worked with the Brooklyn District Attorney’s Office, where prosecutors filed charges against a Brooklyn resident accused of running a long-running impersonation scheme targeting Coinbase customers.Shares of Coinbase fell about 1.2% to $236.79 on Friday. The stock is down about 4.6% so far this year.

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