Quick Summary
- $2.2 billion in crypto stolen in 2024 so far
- Coinbase suffered a breach—no funds lost but could cost $400 million
- Hackers used social engineering tactics, tricking offshore agents
- $20 million ransom demand refused by Coinbase; bounty offered instead
- Binance and Kraken stopped similar attacks using AI-driven security
- Wake-up call: Human error is now the biggest security risk
The New Face of Crypto Hacks: Social Engineering
The crypto world is under threat again—this time from smarter phishing scams that don’t just target systems, but people. In 2024 alone, hackers have stolen a staggering $2.2 billion from various platforms, and now, Coinbase has found itself at the center of a sophisticated cyberattack.
What Went Wrong at Coinbase?
According to a recent SEC filing, Coinbase revealed that hackers manipulated offshore customer service agents, gaining access to select user data and account records. The attackers reportedly bribed employees, a classic example of social engineering at play.
No passwords, private keys, or crypto funds were compromised, but the fallout may cost Coinbase up to $400 million, factoring in damage control and reimbursements. Instead of paying the $20 million ransom, Coinbase flipped the narrative by offering the same amount as a bounty to catch the culprits.
Binance and Kraken Fend Off Attacks
Meanwhile, Binance and Kraken were also in the crosshairs—but walked away unscathed. Hackers approached their customer service agents via Telegram, seeking personal and sensitive user info. But thanks to their robust internal systems and AI-powered alerts, these exchanges caught the red flags early and avoided a breach.
Smarter Security for Smarter Scams
The lesson? Hackers are no longer just cracking code—they’re cracking human psychology. And that’s where most platforms are still vulnerable. These events underscore the need for crypto companies to double down on employee training, especially for third-party partners.
Final Thoughts
As Coinbase scrambles to manage the aftermath, Binance and Kraken have set a high bar for proactive defense. With phishing tactics getting more advanced, this incident is a loud reminder: in crypto security, people are the new perimeter.