Indian authorities have arrested a former Coinbase customer service agent in Hyderabad for their role in a data breach that affected nearly 70,000 users, Coinbase CEO Brian Armstrong said.
The breach, which began in December 2024, involved cybercriminals bribing offshore support staff to access sensitive customer information. The stolen data included names, addresses, phone numbers, and government-issued identification.
Coinbase refused a $20 million ransom demand and reported $307 million in costs related to the breach, including remediation and customer reimbursements.
“This arrest is part of our zero-tolerance approach to bad behavior,” Armstrong wrote on X. “Another one down and more still to come.” The investigation linked the breach to employees of TaskUs, a Texas-based outsourcing firm operating in India.
Coinbase is also facing a shareholder lawsuit alleging delayed disclosure of the breach. The arrest in India comes shortly after U.S. authorities charged a Brooklyn resident with a separate phishing scam that stole $16 million from about 100 Coinbase users.
Following the news, Coinbase shares fell 1.2% to $236.90. Indian law enforcement has not released an official statement regarding the arrest.
