In response to a blackmail attempt by hackers who stole partial user data and demanded payment to prevent its release, Coinbase has launched a $20 million bounty program. The exchange confirmed that an undisclosed number of customers’ accounts were accessed illegally via bribes paid to offshore support representatives, leading to the attempted extortion of $20 million in Bitcoin. Despite this breach being limited to less than 1% of monthly users, Coinbase assures that no passwords, private keys or funds were compromised, and that Coinbase Prime accounts remain unaffected. The company is offering a significant reward for any information leading to the identification and conviction of the perpetrators. This incident follows a similar extortion attempt in 2022, highlighting the ongoing risk of insider threats and social engineering attacks against crypto companies with large user bases. Furthermore, scams targeting Coinbase users using phishing schemes are on the rise, as reported by blockchain researcher ZachXBT. The company is taking proactive measures to enhance its security practices and warns users about potential communication from scammers posing as Coinbase representatives.