A recent investigation reveals that Coinbase was aware of a customer data leak at an Indian outsourcing facility run by TaskUs as early as January 2025. The breach involved employees allegedly selling customer information to hackers in exchange for bribes. This came to light after an employee photographed her computer screen, revealing the illicit activity. Over 200 employees were subsequently fired following the investigation into this data leak.
TaskUs discovered the breach after one of their employees was caught photographing and sharing customer information with external hackers. This prompted TaskUs to inform Coinbase about the incident in January 2025. However, it wasn’t until May 14th when Coinbase disclosed the breach publicly, following a $20 million extortion demand.
The investigation has also led to questions regarding Coinbase’s delay in disclosing this information after learning of it earlier in January 2025. The firm acknowledged that their contractors had accessed employee data without needing it for business purposes in previous months but only realized the extent of the security breach upon receiving a $20 million extortion demand on May 11th.
Coinbase’s customer base was affected by this attack, which they disclosed publicly and offered a reward for tips leading to the arrest of the attackers. The estimated cost of this breach is between $180 million and $400 million due to remediation, refunds, and losses caused by phishing scams.
TaskUs has confirmed that two employees were fired in early 2025 after illegally accessing client data. However, they initially did not identify Coinbase as the affected client. TaskUs was unaware of the extent of the security breach until it was reported to them.
The incident highlights a coordinated attack on multiple service providers across different outsourcing companies that handled customer support functions for Coinbase. This raises concerns about the sophistication of the data pilferage scheme and underscores the need for greater transparency in outsourced operations.