Coinbase Global Inc. announced that a former customer service agent in India has been arrested in connection with a major security breach.
CEO Brian Armstrong confirmed the arrest Friday on X and emphasized Coinbase's cooperation with law enforcement.
"We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice," Armstrong posted.
"Thanks to the Hyderabad Police in India, an ex-Coinbase customer service agent was just arrested. Another one down — and more still to come," he added.
Earlier this year, Coinbase said hackers bribed non-U.S. employees and contractors to access sensitive customer data, then demanded a $20 million ransom.
The company estimated that potential breach-related costs could reach $400 million.
Coinbase disclosed in May that attackers gained access to customer information by bribing overseas customer support agents with account access, raising significant privacy concerns.
While details about the broader group of perpetrators remain limited, Armstrong's announcement confirmed at least one arrest tied to the incident, highlighting Coinbase's efforts to address the breach and work with authorities.
Not all commenters on social media were satisfied with the update, with many criticizing the company's use of outsourced customer support in India.
"Have you tried not outsourcing your customer support agents to 3rd world countries (and giving them insane levels of access) where they can be bought off with low three to four figures," one user wrote.
"Maybe spend extra money and hire Americans to service Americans moving forward. Customer service is incredibly important, especially when money is involved," another added.
Coinbase has said it is working with law enforcement across multiple countries as it seeks to limit financial and reputational damage from the breach.
The company announced over the summer it remains committed to safeguarding users' funds and personal information while continuing to assist authorities in their investigation.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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