6000 coinbase clients hacked

[BrianH]

Another example why using central exchanges is risky. The hackers knew private data of the users. One corrupt employee or one successful hack and bad guys capture your email, home address, phone number and sell it to local criminals who might knock on your door then best encrypted wallets are useless. Cryptocurrencies are designed for peer to peer usage. If you change it into peer to bank to peer then this adds some risks.

https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/

Exactly right. You would think after the Mt. Gox hack, the Bitfinex hack, the Binance hack, etc people would learn to stay away from KYC, centralized exchanges, especially considering Satoshi's vision for BTC (see sig).

Here are some decentralized alternatives to centralized exchanges.

[1714279548]

1714279548

[1714279548]

1714279548

[nelson4lov]

Well, for all intent and purpose... Coinbase has acted like a Bank for a long time.. and Banks get robbed. They also have a long history and reputation for shitty customer support, so I will not put it past them.. that one of the people from the inside.. leaked the data.

The question is.... Why has this been swept under the carpet for months? They obviously did not want the bad publicity and/or it was a inside job and they covered their a$$es. 

My guess is that they didn't want the bad publicity because Coinbase stocks were launched around that time so the bad publicity should have done a significant damage to the stock's price. At the end of the day, this just shows that it's always better to take responsibility for the safety of your crypto assets. Putting them in the hands of these centralized exchanges makes it more prone to attacks since these platforms are hosted on centralized servers which can be hacked or tempered with.

[DeathAngel]

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

[bryant.coleman]

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

LOL.. Imagine my case. Back in 2014 and 2015, I signed up for at least a dozen cryptocurrency exchanges (half of them are no longer in operation). These exchanges are based in different countries, such as South Korea, Japan, Slovenia and the United States. Back then, I never thought that sending in a scanned copy of the national ID card and the passport would be such a bad idea. Fortunately my passport expired recently and I had to renew it. But I am still concerned about the copy of the national ID card. Criminals can still misuse it.

[Mpamaegbu]

The hack took place between March and May 20 of this year, according to a copy of the letter posted on the website of California's Attorney General.

Can anyone beat that? This is why we say the media is the biggest problem of the crypto industry, not politicians. Why exhume something that happened between March and May at this time in October (four months after) if not to cause panic at a time Bitcoin seemed to be recovering? The media is the witchcraft here. It's very disappointing too that such came from Reuters, like rioters. Nonsense.

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

A lot of us made that mistake back then. We really can't help what happened in the past now but to try and make amends for the future, going forward.

[DaveF]

The hack took place between March and May 20 of this year, according to a copy of the letter posted on the website of California's Attorney General.

Can anyone beat that? This is why we say the media is the biggest problem of the crypto industry, not politicians. Why exhume something that happened between March and May at this time in October (four months after) if not to cause panic at a time Bitcoin seemed to be recovering? The media is the witchcraft here. It's very disappointing too that such came from Reuters, like rioters. Nonsense.

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

A lot of us made that mistake back then. We really can't help what happened in the past now but to try and make amends for the future, going forward.

Because Coinbase did not tell anybody about it till now. If Coinbase did not make a statement or let anybody know, then nobody can report on it.
On a side note 6000 customers out of the 68,000,000 that they have is also a very small amount. So although an interesting story, it's not like most of they clients had any issues.

-Dave

[yazher]

We become more vulnerable to hackers knowingly or unknowingly because they learn from constant experiences and regular practice. To not fall prey of vipers like this extra caution should always be taken. Imagine one using same password for all the email accounts he has, and all the accounts he has online. When one account is attacked, the rest gets vulnerable.

Every year hacking on exchanges such as this one always occurred because the hackers are also updating their skills and sometimes they find some way to hack some vulnerable centralized exchanges. That's why it has become obligatory for us if we are holding big amounts of bitcoins that we need to store in our hard wallet so that we are the only ones who can access it. Because when the hackers successfully send it out from the exchange, it's almost impossible to recover it.

[ChiBitCTy]

I can't count how many different clients I meet and work with on a daily basis who ask me about bitcoin and other cryptocurrencies and when they tell me that they've bought some already, and then I ask them where they currently keep it..it's always on an exchange.  Trezor should start to give me some sort of bonus for referring so many people to them.

[pawanjain]

Whether or not it was an inside job but this incident proves how dangerous it is to store high amount of coins on exchanges.
Imagine what would have happened if an employee of Binance sold it's users data to an external party.
This is why we it is always recommended to store your crypto savings to non-custodial wallets and keep only a minimum amount of coins on exchanges.
Sadly, people don't take this point seriously until they become a victim of such incidents.

[yohananaomi]

I can't count how many different clients I meet and work with on a daily basis who ask me about bitcoin and other cryptocurrencies and when they tell me that they've bought some already, and then I ask them where they currently keep it..it's always on an exchange.  Trezor should start to give me some sort of bonus for referring so many people to them.

there are still many who believe that what is put on the exchange is easier so that what will be done later does not have to do several transactions. In fact, most of them believe because of the habit and convenience that is obtained and they also believe that there will be a replacement, although in the end it may not be guaranteed.

saving on Trezor is certainly better and if you educate all those involved in crypto about the importance of storing on Trezor devices, obviously you should get attention from Trezor like a Bonus, because the education you do is going well, so everything starts a lot switch to Trezor instead of being kept on the exchange.

[masterrex]

It always happens and we have nothing to do about it, Hacking in the crypto industry just becomes normal nowadays, this is clear evidence that no platform is hundred percent safe all are subjected to vulnerabilities and we the users must accept it as a part of the risk while using it, many huge and famous platform such as Binance, Bithumb and now Coinbase has become a victim of this unexpected event recently the question is what platform will be the next victim? just asking.   

[seoincorporation]

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

You hit the nail.

Isn't about how risky or how secure the exchange is, the problem is that people use them as wallets. And that's a really big mistake. People should only depo and withdraw when they want to trade, but never hold the coins in the exchange, because if something goes wrong then they will lose all their cryptos.

[24Kt]

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

You hit the nail.

Isn't about how risky or how secure the exchange is, the problem is that people use them as wallets. And that's a really big mistake. People should only depo and withdraw when they want to trade, but never hold the coins in the exchange, because if something goes wrong then they will lose all their cryptos.

Even how many times have we read about this advise and yet, a lot of crypto users are still storing their funds in exchanges. And if in case you will store for a time in exchanges, make sure the exchange some sort of insurance that you can get your money back if anything happens. Just like what binance has, they have safu, which is like an emergency insurance for their users.

[carlfebz2]

The question is.... Why has this been swept under the carpet for months?

It  wasn't. They notified folks whose accounts were compromised and dealt with it. The only new thing is that Reuters decided to (again) make it 'news'. Must be a slow week for them?

or probably just a futile attempt at FUD?

Fud or just tending to make out some issues just to make out some attention in the market but i dont really believe that they had been making things just because they arent making that much? I dont think so.

Hacks could happen whether inside job or totally external attacks because we know that in reality that nothing is unhackable on this world so expect the unexpected.

Thing here is that these platforms/services would able to handle these things up.

[Shenzou]

Another example why using central exchanges is risky. The hackers knew private data of the users. One corrupt employee or one successful hack and bad guys capture your email, home address, phone number and sell it to local criminals who might knock on your door then best encrypted wallets are useless. Cryptocurrencies are designed for peer to peer usage. If you change it into peer to bank to peer then this adds some risks.

https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/

Well to be honest using centralized exchanges and keeping some huge amount of your investment on it is a stupid idea, and any traders should be knowing that high funds are always at risk and his data is exposed if he is using an online, and to honest hacks are bound to happen one way or another and they are always done by some form of human error and there will always be some loophole in the security that somonesomwhere in the world will use it, so it is better to have control over your own funds rather keeping it in the hands of others.

[perfect999]

Yet another reason why KYC is a bad thing. Damn, I wish I didn’t sign up to so many exchanges in the past. Obviously leaving a significant amount of bitcoin on an exchange is a bad idea but we shouldn’t have to worry about our personal details being stolen.

It's not the fault of KYC, it's the fault of the company that should be the one that's protecting their stuff from this hackers, they do know that they're at fault here but the problem is that they're too stingy to do an action to solve the problem.

Surely it's not fault of KYC, and it's all about company but just because of this hack nearly 6000 persons now feeling bad about their documents it's a big issue for them. Hacks and Bitcoin are going side by side it's almost one decade, sadly companies fail to do something about this as well.

We have some holes every time which helping hackers for doing their own trick and stole their data and assets with success in few cases employee's from company give sensitive data to peoples for money and this all happen because hacking software are getting sophisticated just because of this exchanges need to upgrade their security level because now adoption is spreading and too many peoples are involved in this all, and they want some better security from exchanges.

[Sithara007]

On one hand the government is cracking down really hard on any exchange with relaxed KYC norms. And on the other hand, there is a significant increase in incidents of hacking, and theft of documents that are being used for KYC. For me, this is a big concern. I had signed up for multiple centralized exchanges in the past and on many occasions I had to send the scanned copies of identity documents in order to complete the KYC formalities. If these documents end up with the wrong people, then it may create trouble for me.

[Chato1977]

Another example why using central exchanges is risky. The hackers knew private data of the users. One corrupt employee or one successful hack and bad guys capture your email, home address, phone number and sell it to local criminals who might knock on your door then best encrypted wallets are useless. Cryptocurrencies are designed for peer to peer usage. If you change it into peer to bank to peer then this adds some risks.

https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/

even how hard or strict a exchange is but if there is corruption on going surely cases like this will continues to happen.

This is same reason that it is really hard to trust sites that asks KYC because it will always be the target of criminals.

[coupable]

Another example why using central exchanges is risky. The hackers knew private data of the users. One corrupt employee or one successful hack and bad guys capture your email, home address, phone number and sell it to local criminals who might knock on your door then best encrypted wallets are useless. Cryptocurrencies are designed for peer to peer usage. If you change it into peer to bank to peer then this adds some risks.

https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/

even how hard or strict a exchange is but if there is corruption on going surely cases like this will continues to happen.

This is same reason that it is really hard to trust sites that asks KYC because it will always be the target of criminals.

People from some countries are not allowed to use decentralised non-regulated exchanges. Most of them are forced to use exchanges regulated by law, take the example of China or USA. Even major exchanges set in their TOS to not accept registrants from those countries for legal issues.
The point here is not to use centralised exchanges at all, especially as they are rgulated, but to not use those exchanges for big money long term holds. Always remember the rule 'Not your keys, Not your coins'

[TheGreatPython]

Another example why using central exchanges is risky. The hackers knew private data of the users. One corrupt employee or one successful hack and bad guys capture your email, home address, phone number and sell it to local criminals who might knock on your door then best encrypted wallets are useless. Cryptocurrencies are designed for peer to peer usage. If you change it into peer to bank to peer then this adds some risks.

https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/

So since this happened what has Coinbase done about the users that were affected? Because 6000 is not a small number so I know that it’s going to be difficult for Coinbase to do something about this, unless maybe with time they might be able to settle all this users for the losses that they have been through on their platform. Making use of centralized platforms has always been a huge risk in the sense that when these centralized platforms gets hacked by any group of hackers they have access immediately to the user's database.

And just like you have said a bad employee in the company can be stealing information and selling it to bad people who might decide to hack with whatever information that belongs to the users. So it’s very best that people learn to secure their assets and make sure they’re using the best practices.