- Coinbase terminated its deal with TaskUs after its recent data breach was linked to an Indian employee of the firm.
- In response to the incident, Coinbase cut ties with all involved third-party vendors, reported the breach to regulators, reimbursed affected customers, and upgraded its internal security systems.
Coinbase has ended its partnership with TaskUs due to its recent data breach that was reportedly linked to an Indian contractor. The incident exposed sensitive customer information and is estimated to have caused damages worth $400 million.
Coinbase, which is one of the biggest crypto exchanges, faced a major data breach. Apparently, the issue was discovered in January but shared publicly in May through an SEC report, causing many to question the company’s method of protecting user details and managing outside service providers.
How the Coinbase Breach Happened and TaskUs’ Reply
According to the details shared by TaskUs, it revealed that one of its Indian employees used a phone to take a picture of the exchange users’ details. Five past workers said the woman and someone helping her were bribed by hackers to steal Coinbase customer records. Coinbase was warned quickly after the incident, according to several staff and an extra source.
When the exchange first confirmed the hack, they pointed fingers at overseas agents. However, once they realized the full scale of the breach, they were forced to respond quickly. According to Tronweekly, the company later received a $20 million ransom demand, highlighting just how serious the situation had become.
The firm then ended contracts with not just the TaskUs group involved but also with other unnamed outside partners. They also involved government bodies, paid back users who lost money, and improved their security steps. In a short public message, TaskUs confirmed that two workers were fired for stealing information. However, they did not mention names.
Related Reading | Bitcoin Forms Bullish Cup & Handle Pattern Aiming for $200K
