Three Buddy Problem A Coinbase breach with bribes, rogue contractors and a $20M ransom demand
4 snips
May 16, 2025 AI Snips
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Episode notes
Coinbase's Breach Scope Revealed
- Coinbase breach involved bribed international contractors leaking KYC data to criminals. - The $20 million ransom demand reflects a relatively small scope compared to typical crypto theft sums.
Coinbase Protects Users Like Banks
- The breach leaked personal information but not private keys or login data. - Coinbase plays a bank-like role protecting users by reimbursing losses caused by scams.
KYC Outsourcing Risks Exposed
- KYC requirements create a soft spot as companies outsource verification to third parties, increasing risk. - This outsourcing leads to mishandling of sensitive identity data, creating systemic vulnerabilities.