Coinbase, a prominent US cryptocurrency exchange, has been embroiled in a major data breach affecting thousands of customers. According to official statements, data from 69,461 users was compromised due to an incident involving external customer service staff who improperly shared client information with malicious actors. This breach exposed sensitive details such as names, contact information, social security numbers, and identification documents, leading to potential fraud and identity theft. Coinbase has faced intense criticism for its public disclosure process and legal response to the breach. The company’s CEO, Brian Armstrong, specifically criticized KYC procedures, highlighting their limitations in preventing illegal activities and urging a re-evaluation of data collection practices within the cryptocurrency industry. Following the disclosure, a surge in class-action lawsuits from affected users was reported. Coinbase denied manipulating timing and claims that adjustments to user agreements were communicated earlier. The breach has raised serious concerns about customer security and trust in the cryptocurrency space.