Just this week, Coinbase faced a data breach/hack when cybercriminals bribed overseas support agents to steal sensitive customer information, affecting about 1% of its 9.7 million monthly users. Hackers demanded a $20 million Bitcoin ransom, which Coinbase rejected, offering a matching reward for the culprits’ arrest.
As for now, no funds or private keys were compromised, but the incident exposed centralized exchange vulnerabilities.
This breach displays the risks of centralized exchange (CEX) wallets, where third parties manage user data and assets. Coinbase’s bribed agents proved this, leaking names, IDs, and account details, causing total havoc through social engineering scams.
https://t.co/evpIBMFvRW pic.twitter.com/f6UPdkL5R0
— Brian Armstrong (@brian_armstrong) May 15, 2025
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Coinbase Hack: What happenned?
Cybercriminals bribed overseas customer support agents to steal sensitive customer data, including names, addresses, phone numbers, emails, masked bank account numbers, partial Social Security numbers, government ID images, account balances, and transaction histories.
Following it, the attackers demanded a $20 million ransom in 
BTC ▲1.61% not to leak the data. Coinbase refused to pay, instead offering a $20 million bounty for information leading to the attackers’ arrest.
(source)
Althought no passwords, private keys, or funds were directly stolen, the data however could enable social engineering scams. Coinbase estimated remediation and reimbursement costs at $180 million to $400 million, which lead to over 6% drop on its share, $COIN.
In response, Coinbase fired the involved support agents, referred them to law enforcement, and is pressing criminal charges. The company is reimbursing users who lost funds due to related scams, opening a US-based support hub, and strengthening internal data management.
Not the First Time
This is not the first time Coinbase has received such threats.
During March to May 2021, a group of hackers exploited a vulnerability in Coinbase’s SMS-based two-factor authentication (2FA) system. Attackers used phishing campaigns to obtain users’ email addresses, passwords, and phone numbers.
They then leveraged the SMS flaw to bypass 2FA and access accounts. Funds were transferred to external crypto wallets. At least 6,000 customers had funds stolen. The exact amount of losses wasn’t disclosed, but Coinbase reimbursed affected users.
#Coinbase Warns as THOUSANDS Targeted in Phishing Attack😳
The exchange has fully compensated those who had funds stolen — but is now warning all of its customers to step up their security measures.
Full Details On The Daily News ReCap on #YouTube 👇https://t.co/zkGFikIZQC pic.twitter.com/oZQm5d6BMf
— CoinMarketCap (@CoinMarketCap) October 4, 2021
Another case occurred in February 2023, when the Oktapus hacking group targeted Coinbase employees with an SMS hack phishing campaign.
The group tricked one employee into entering login credentials via a fake link. The attacker then posed as Coinbase’s IT department over the phone, attempting to gain deeper system access. Luckily, Coinbase’s security team intervened before significant damage occurred.
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Preventive Measure
Non-custodial wallets like BEST wallet, unlike CEX wallets, give users full control over private keys, stored on personal devices. They support diverse assets like Bitcoin and Ethereum, integrate with decentralized apps, and avoid centralized data risks. Users also manage their security, aligning with the crypto ethos of self-sovereignty.
CEX wallets, like Coinbase’s custodial option, offer seamless trading and user-friendly interfaces that are ideal for beginners. However, they hold private keys, making them hack targets. The 2025 breach showed how insider threats can expose sensitive data, even without direct fund theft, which erodes trust.
BREAKING 🚨 NEWS : COINBASE HACK – issue is KYC. The more we KYC the more at risk the user is. pic.twitter.com/SN2eQKjQWI
— Jason Ai. Williams (@GoingParabolic) May 15, 2025
Why a non-custodial wallet?
- Full control over private keys, unlike a CEX wallet, which is vulnerable to hacks and insider threats.
- Immune to exchange hacks as no third party controls private keys. Not your key, not your wallet.
- Supports diverse assets and dApps.
- Aligns with the decentralization ethos.
BEST Non-Custodial Wallet for CEX Users
With the recent Coinbase and Bybit hack, smart investing is needed, which means prioritizing security and control over everything. Best Wallet as a non-custodial crypto wallet gives full ownership of private keys to users, eliminating third parties, ensuring your assets stay yours.
What makes Best Wallet better than its competitors?
It’s beginner-friendly. Best Wallet simplifies asset management while offering tools to spot high-potential tokens. It comes with features like portfolio tracking and a built-in dApp browser, making it ideal for navigating DeFi and NFT markets.
With Best wallet, you keep your keys offline, protecting you against hacks and allowing you to trade confidently on-chain.
Best Wallet balances ease of use with robust security. It supports more than 60+ blockchains, allowing seamless token swaps and Web3 exploration.
As a bonus, it comes with its governance token. Still in presale and already raised nearly $12 million. If you stake, you can join the funding/ICO phase at $0.025 per BEST with 112% APY rewards.
As Bitcoin breaches $100,000, Best Wallets allow you to capitalize on opportunities while avoiding common pitfalls. It has the power to spot new presales before they even hit exchanges.
Check the video below if to learn more:
Download Best Wallet today on Google Play or the Apple App Store.
Stay connected with the Best Wallet community on X, Telegram, and Discord.
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Key Takeaways
- What is really happening in the Coinbase hack saga?
- Self-custodial might be the way to go to avoid your data from being stolen.
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