CoinDesk Podcast Network BITCOIN SEASON 2: Not Just Coinbase, Everyone’s Leaking Crypto User Data
May 17, 2025
A recent data breach at Coinbase has raised alarms about user privacy in the crypto world. Support agents were reportedly bribed to leak customer information, highlighting vulnerabilities in KYC processes. The podcast discusses the alarming rise in physical attacks on crypto holders, particularly as hackers demand ransoms. It also explores alternatives to centralized exchanges, stressing the importance of maintaining privacy while navigating regulatory landscapes. Practical strategies for protecting oneself against scams and digital threats are also shared.
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KYC's Insider Threat Risk
- The biggest risk with KYC is employee bribery in centralized exchanges leaking customer information.
- This vulnerability comes from insider threats, not just technical hacking or software breaches.
KYC Reflects Old Banking System
- KYC and AML regulations stem from surveillance regimes like the Bank Secrecy Act.
- The crypto industry replicates old banking processes, increasing reliance on centralized fiat onramps and expanding attack surfaces.
Use Privacy-Preserving P2P Trades
- Use privacy-preserving peer-to-peer marketplaces for fiat-to-crypto trades to reduce repeated KYC exposure.
- This approach lowers systemic risk and protects your sensitive personal data from being widely shared.