Coinbase Data Leak Exposes ₹3,320 Crore Security Failure and Bribery Scandal in India
A major data leak has hit U.S.-based crypto exchange Coinbase due to a security failure and bribery scandal in India. The loss? Around $400 million — or ₹3,320 crore. The incident involves its Indian outsourcing partner, TaskUs. What started with one suspicious act at an Indore office turned into a full-blown scandal. Bribes, leaked data, and security failures have put Coinbase under serious scrutiny.
Coinbase Data Leak Exposes ₹3,320 Crore Security Failure and Bribery Scandal in India
It all started in January at a TaskUs office in Indore. A female employee was seen taking photos of her computer screen using her personal phone. Five former employees say this moment exposed a deeper problem. The woman and an accomplice allegedly leaked sensitive Coinbase user data in return for bribes.
The internal damage was massive. Over 200 employees at TaskUs were fired shortly after. This layoff drew brief media attention in India. At the time, no official link to Coinbase was mentioned. Now, it’s clear the crypto exchange was the affected party.
Timeline Disputes and Hidden Details
Coinbase reported the breach on May 14 to the U.S. Securities and Exchange Commission (SEC). But insiders say the company knew about it much earlier — in January itself. This difference in timelines is raising serious questions.
A lawsuit filed in Manhattan last week claims the breach came from “support agents overseas.” Coinbase didn’t name TaskUs directly in that lawsuit. However, sources now confirm that TaskUs was the outsourcing company involved.
TaskUs has since admitted that two of its employees were fired for unauthorised access. It also stated that the client, now confirmed as Coinbase, was informed right away. The company suspects the breach was part of a larger criminal operation targeting other vendors linked to Coinbase.
A Systemic Security Failure
The leaked data included information that should not have been accessible to these employees. Coinbase later admitted that some contractors accessed customer data “without business need” for several months. The company said it only realised the full extent of the breach after receiving an extortion demand on May 11.
Critics believe Coinbase failed to respond quickly. They also say the company should have been more transparent. Outsourcing sensitive tasks to overseas agents, especially in the finance sector, comes with risks. This breach highlights the dangers of such practices.
Coinbase has since cut ties with the involved TaskUs workers. It also ended contracts with other unnamed overseas vendors. However, the company hasn’t revealed any plans for legal action against TaskUs or the employees involved.
No Arrests Yet, Investigation Ongoing
So far, there have been no arrests in India. Authorities in Indore have not shared updates. Insiders say an investigation is ongoing, but a lack of international cooperation may slow progress. For now, the data breach remains a global warning, showing what can go wrong when security fails and trust is broken.
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