Coinbase Rocked by $400M Insider Hack: $20M Bounty Launched

Coinbase $400M insider hack has stunned the global crypto community after revelations that the attack wasn’t just a technical breach — it involved bribed employees, compromised internal systems, and direct intervention from U.S. regulators. The largest U.S.-based crypto exchange now finds itself battling on multiple fronts: plugging security holes, facing government scrutiny, and launching a $20 million global bounty to track down the perpetrators.

An Inside Job Shakes Trust

According to early reports, the hackers didn’t merely exploit digital vulnerabilities. Instead, they allegedly bribed customer support agents, gaining access to sensitive user data and internal tools. These tools allowed the attackers to bypass security protocols and initiate unauthorized fund transfers that led to an estimated $400 million in digital assets disappearing overnight.

While full details remain classified due to ongoing investigations, Coinbase insiders confirmed that the breach was “coordinated, high-level, and deeply embedded.” Employees who cooperated or were coerced are under internal and federal investigation.

SEC Steps In

The U.S. Securities and Exchange Commission (SEC) has already sent formal inquiries to Coinbase, suggesting the breach may have violated user protection and cybersecurity compliance standards. While no formal charges have been filed yet, legal experts warn this could escalate into a full regulatory confrontation.

A Coinbase spokesperson stated:

“We are working closely with federal authorities and independent investigators to uncover the full scope of this attack. Our priority is safeguarding our users and restoring trust.”

$20 Million Global Manhunt

In an unprecedented move, Coinbase has issued a $20 million bounty for any information that leads to the identification, capture, or conviction of the attackers. The company is also collaborating with Interpol, the FBI, and blockchain forensics firms to trace the digital footprints left behind.

This bounty is one of the largest in crypto history, signaling how seriously Coinbase views the attack — and how determined it is to bring the criminals to justice.

What It Means for the Crypto Industry

The incident raises critical questions about internal security protocols, third-party risks, and employee screening in major crypto exchanges. For years, Coinbase had positioned itself as the most compliant and secure exchange in the U.S. — a reputation now under siege.

Experts warn that this could erode public trust in centralized crypto platforms, with increased calls for decentralized solutions and more robust user-controlled wallets.