Coinbase issued a breach notice this week stating that at least 6,000 user accounts have been hacked. The exchange said the breach took place between March and May this year.
What we know
The letter states that unauthorized third parties have used Coinbase’s SMS account recovery process and transferred user funds to accounts outside of Coinbase. However, the company added that in order to do this, you need to have the email address, password and phone number of that third party – as well as email access.
Coinbase believes that users have been the victim of a phishing attack to disclose this information, or some equivalent, and there was no evidence to support that this information was taken directly from Coinbase. The exchange says that the account recovery protocol in the vicinity of SMS was updated after the Coinbase problem was discovered.
The letter closes that some accounts have already been refunded and all accounts will be fully compensated for any losses. The letter was also posted on the California Attorney General’s website.
Since going public earlier in the year, COIN has faced substantial headwinds, with less-than-stellar stock market performance. | Source: NASDAQ: COIN on TradingView.com
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Security is first
Although the amount of hacked crypto has not been disclosed, Coinbase’s immediacy in recovering user funds is reassuring, but there has come a time when several stories have surfaced around hacking and vulnerability.
In recent days, Compound Finance has issued a governance rule that contained a minor flawed code that resulted in inappropriate tokens being distributed, putting more than $ 80 million in COMP tokens at risk. Just a few days ago, the DeFi protocol lost more than $ 12 million to pNetwork hackers.
This is not the first sticky situation for Coinbase recently. Last week, pressure from the Securities and Exchange Commission (SEC) was enough to completely remove the company’s expected interest-generating product. This comes after a blog post and Coinbase CEO Brian Armstrong’s long-winded tweet thread expressed frustration with contacting the SEC just weeks later and describing the agency as “sketchy”.
In addition, major crypto exchanges have faced challenges in recent months with potential infrastructure legislation and the effects of the USDC drama.
Crypto’s security and safety have improved significantly over time, but that doesn’t mean anyone is weak. Our team at NewsBTC reminds you to always use two-factor authentication, ideally through an authentication, never share your seed phrase, use the platforms you trust and look for suspicious emails that are trying to fish.
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