- Hackers tried to bribe staff at Binance, Kraken, and Coinbase.
- Binance and Kraken blocked the attacks with AI and strict access rules.
- Coinbase lost data and is offering a bounty to catch the attackers.
For global crypto giants, the biggest risk isn’t always in the code. Sometimes, it’s the customer support rep answering the phones.
Kraken and Binance were recently targeted by the same social engineering attack that led to a major customer data breach at Coinbase, according to Bloomberg sources.
While Coinbase now faces potential losses of up to $400 million, the two rival exchanges say they fended off similar attacks using stricter internal controls and real-time monitoring.
Bad actors reportedly contacted customer support agents at these exchanges, offering bribes for sensitive customer data.
In Coinbase’s case, a number of overseas reps accepted the offer, handing over information including names, addresses, partial KYC data, and account balances.
The attackers then demanded a $20 million ransom to delete the stolen data.
Binance claims to use artificial intelligence bots that monitor chats between support staff and customers in multiple languages. These bots can even detect bribery attempts and automatically cut off communication.
The exchange also limits staff access to sensitive data unless a customer initiates the contact.
Kraken reportedly relies on similar internal policies and measures that restrict unnecessary access to user information.
Coinbase said about 1% of its monthly users were affected. No login credentials or private keys were stolen, but the leaked personal information could fuel phishing or SIM-swap attacks.
CEO Brian Armstrong said the bribed reps had been fired. The company refused to pay the ransom and is now offering a $20 million bounty for help identifying the attackers.
Crypto market movers
- Bitcoin has lost 0.7% of its value in the past 24 hours and is trading at $103,000.
- Ethereum is down 4.7% in the same period to $2,485.
What we’re reading
- Ripple-SEC courtroom snafu dents XRP price rally hopes ― DL News
- Coinbase Is Being Extorted. What Does That Mean for Its Stock? ― Unchained
- ICM tokens = memecoins on meth — Milk Road
- Galaxy shares fall in Nasdaq debut as firm seeks ‘liquidity, liquidity, liquidity’ ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
