Coinbase Faces Ransom Demand After Major Data Breach

Coinbase CEO Brian Armstrong confirmed a significant $20 million ransom demand following a data breach in May 2025, which exposed customer information impacting less than 1% of users. The security incident poses challenges to Coinbase’s reputation and raises concerns about the platform’s future. Despite market reaction, Armstrong pledged full reimbursements and announced a $20 million reward for information on the attackers, indicating the growing role of crypto in mainstream finance. Coinbase continues to navigate the aftermath of this breach while emphasizing its commitment to enhanced security measures.