US Justice Department Opens Investigation Into Coinbase Hack Following Its S&P 500 Debut

The Coinbase hack saga continues following a breaking development about the US Justice Department’s plans to open an investigation into the data breach against the top crypto exchange.

The US Justice Department has reportedly opened an investigation into the recent data breach at crypto exchange Coinbase (NASDAQ:COIN). This follows the exchange’s debut on the S&P 500 today, with the COIN stock price closing the day in the red.

U.S. DOJ To Open Probe Into Coinbase Hack

According to a Bloomberg report, investigators, including those in the department’s criminal division in Washington, are looking into the events that led to the breach at Coinbase.

As CoinGape reported last week, the top crypto exchange suffered a cyberattack. The criminals allegedly bribed and recruited rogue customer service agents overseas to gain access to users’ personal data.

The company claimed that the hackers didn’t gain access to any sensitive data. In the meantime, the exchange promised to reimburse affected customers. Additionally, they launched a $20 million reward to track down the exploiters, who had blackmailed them for the said amount in exchange for not releasing the data.

The Coinbase data breach affected top executives, including Sequoia Capital’s Roelof Botha. Meanwhile, exchanges Binance and Kraken reportedly also faced similar incidents. Crypto millionaires have moved to hire bodyguards following the hack. The exchange is also facing up to six lawsuits due to the compromised user personal data.

Coinbase Makes S&P 500 Debut

Amid the launch of the probe into the Coinbase hack, the exchange made its debut on the S&P 500 today. It becomes the first and only crypto company to achieve this milestone.

As CoinGape reported last week, the crypto exchange will replace Discover Financial Services in the index following Capital One’s acquisition of the latter. The move will also make Coinbase the smallest component in the S&P 500.

Despite the debut, the COIN stock price closed the day in the red, trading at around $263. The stock rebounded to this price level last Friday following the crash on May 15 due to reports of the data breach and the ongoing SEC investigation into alleged misleading user numbers in past disclosures.

The exchange’s Chief Legal Officer, Paul Grewal, confirmed that they are cooperating with the SEC on the investigation, although he believes it shouldn’t continue.

“We are cooperating fully with U.S. and international authorities on this investigation, which we hope will lead to the swift apprehension and prosecution of those responsible,” Grewal said.

Concerning the Coinbase hack, Grewal also revealed that they have notified and are working with the DOJ and other U.S. and international law enforcement agencies.