A hacker exploited insider access to steal data from Coinbase, resulting in a significant loss of $4.5 million. This breach occurred during a market crash in 2025, highlighting vulnerabilities within cryptocurrency exchanges and the urgent need for enhanced security measures. The incident involved unauthorized data access by the hackers, who then initiated a panic-selling of Ethereum, leading to a substantial financial loss. 2025 saw Coinbase’s CEO, Brian Armstrong, announce a $20 million reward for information leading to the arrest of those responsible for the hack. This event prompted industry-wide discussions on cybersecurity and the importance of robust security protocols in safeguarding user data.