Key Highlights:

• Coinbase (COIN) projects a payout between $180 million to $400 million to its users following a data breach attributable to compromised support staff who were allegedly bribed by cybercriminals.
• This information follows claims by on-chain investigator ZachXBT, indicating that Coinbase clients suffered $300 million in losses due to social engineering frauds.
• The firm assured it would financially address the concerns of any affected customers.

Coinbase confirmed the breach, which took place on May 11. Hackers accessed sensitive customer information, including names, addresses, phone numbers, and masked social security numbers. An SEC filing stated that the projected costs for remediation and user reimbursements could range from $180 million to $400 million.

In a blog post, Coinbase stated that it will reimburse customers who lost funds to the attackers. Additionally, they have initiated a $20 million bug bounty for information leading to an arrest.

Despite the concerns arising from this breach, Coinbase reassured that critical security measures such as two-factor authentication codes and private keys remain intact and were not compromised. Details about the staff involved in the breach have led to immediate termination and a referral to law enforcement for potential criminal charges.

The company has yet to address ZachXBT’s allegations concerning the $300 million losses endured by customers.