Largest US crypto exchange reports arrest of former employee in India over hack

A former customer service agent of Coinbase, the largest U.S. cryptocurrency exchange, has been detained in India in connection with a hacking scheme involving the bribery of support staff to obtain customer data. The arrest was announced by Coinbase Global Inc. CEO Brian Armstrong on social media platform X

"We have zero tolerance for bad behavior and will continue to work with law enforcement to bring those responsible to justice. Thanks to the Hyderabad police in India, a former Coinbase customer service agent has just been arrested," Armstrong wrote, adding that "more arrests [are] to come."

A Coinbase spokesperson confirmed the arrest to Bloomberg, noting that it follows the company’s recent cooperation with the Brooklyn District Attorney’s Office. In that case, prosecutors charged a Brooklyn man in what they described as an ongoing impersonation scheme targeting Coinbase customers. 

In May, Coinbase disclosed that hackers had bribed contractors or employees outside the United States to steal confidential customer information and demanded a $20 million ransom. The company said at the time that resolving the incident could cost up to $400 million.

Coinbase shares are down about 4.6% so far this year. On Friday, December 26, the stock fell 1.2% to $236.79.

• In May, the cryptocurrency exchange Coinbase was included in one of the major US stock indices S&P 500, replacing Discover Financial Services.