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Ex-Coinbase agent arrested in India, CEO Brian Armstrong thanks Hyderabad Police
The CEO of one of the world's largest cryptocurrency firms, Coinbase, thanked the Hyderabad Police in a recent tweet for arresting a former company agent who was allegedly involved in a cyberattack on the company, which occurred earlier this year.
“We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice,” Brian Armstrong wrote.
He added, “Thanks to the Hyderabad Police in India, an ex-Coinbase customer service agent was just arrested. Another one down and more still to come.”
Coinbase in May said that hackers bribed contractors or employees outside the US to steal sensitive customer data. The company claimed that the hackers also demanded $20 million ransom. The company, at the time, estimated that the incident could cost up to $400 million.
The news of the arrest was confirmed by a company spokesperson, reported Bloomberg. The company further confirmed that it has filed charges against a Brooklyn man. He is accused of running “a long-running impersonation scheme targeting Coinbase customers.”
According to a BBC report published in May, the company refused to pay the ransom. The company, instead, promised to compensate everyone who was affected by the incident.
"We will reimburse customers who were tricked into sending funds to the attacker," the company stated.
It continued, "We're cooperating closely with law enforcement to pursue the harshest penalties possible and will not pay the $20 million ransom demand we received,” adding, “Instead, we are establishing a $20 million reward fund for information leading to the arrest and conviction of the criminals responsible for this attack."
Following the incident, the company urged its customers to be vigilant. "Coinbase will never ask for your password, 2FA codes, or for you to transfer assets to a specific or new address, account, vault or wallet," it said, reported the BBC.
It warned, "To the customers affected, we're sorry for the worry and inconvenience this incident caused.”
Source: HindustanTimes
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