Customer Data Leak in India Traced Back to Coinbase Breach, Say Sources

According to six sources who spoke with Reuters, cryptocurrency exchange Coinbase Global, Inc. (NASDAQ:COIN) was aware as early as January of a customer data leak tied to an outsourcing partner involved in a broader security breach that could result in losses of up to $400 million.

Customer Data Leak in India Traced Back to Coinbase Breach, Say Sources

A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.

Part of the breach, which Coinbase disclosed in a May 14 SEC filing, reportedly occurred when an employee of the American outsourcing firm TaskUs, working from India, was seen using her personal phone to photograph her work computer. Five former TaskUs employees confirmed this account.

Three of those individuals, along with another person familiar with the situation, said Coinbase Global, Inc. (NASDAQ:COIN) was immediately alerted to the incident. They claimed company investigators or coworkers had briefed them, revealing that the woman and an alleged accomplice were accused of passing Coinbase customer data to hackers in exchange for bribes. This reportedly took place in the Indian city of Indore.

Following the discovery, more than 200 TaskUs employees were dismissed in a mass layoff that caught the attention of Indian media, according to the same sources.

Previously, Coinbase Global, Inc. (NASDAQ:COIN) attributed the breach to “support agents overseas” and warned of a potential financial impact of up to $400 million.

While a recent lawsuit in Manhattan federal court had already pointed to TaskUs, the newly surfaced details shed more light on when Coinbase may have first become aware of the breach.

In a statement to Reuters on Wednesday, Coinbase Global, Inc. (NASDAQ:COIN) said the breach was identified only recently. The company added that it had ended its relationship with the TaskUs employees involved, as well as other foreign contractors, and had strengthened its security measures.

While we acknowledge the potential of COIN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COIN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Why These Energy Stocks Are Gaining This Week and 10 Best Income Stocks to Invest in Now

Disclosure. None.