Coinbase Security Breach Exposes Home Addresses and Account Balances of Some Users

The crypto exchange said fewer than 1% of its monthly transacting users were affected. Still, that small slice could mean thousands of people.

Coinbase is facing backlash after confirming a security breach that saw personal information on some users compromised.

The crypto exchange announced on Friday that the breach affected less than 1% of its monthly transacting users.

However, even a small slice could mean thousands of people. Reports indicate that the small portion of Coinbase users could see as much as $400 million in reimbursements. But money might not be the biggest concern here.

What’s more troubling is the kind of information that fell into the wrong hands—home addresses and account balances. Some experts say this could put people in real danger.

Stolen Info Could Lead To Physical Violence

Michael Arrington, founder of TechCrunch and Arrington Capital, had harsh words for the exchange. In a May 20 post on X, he said this breach could lead to people “dying.”

“It probably has already,” Arrington added. His comment wasn’t just a hot take. There’s been a wave of violent attacks aimed at crypto holders. These are not random thefts—some involve kidnapping and even torture.

I am a long time investor in and champion of @coinbase. Something that has to be said though – this hack – which includes home addresses and account balances – will lead to people dying. It probably has already. The human cost, denominated in misery, is much larger than the $400m… pic.