The recent security breach at Coinbase has raised eyebrows across the cryptocurrency landscape. What transpired, and how does the company anticipate facing a staggering $400 million deficit?
Just days after making history as the first cryptocurrency platform to be included in the S&P 500, Coinbase experienced a significant cyberattack, exposing vulnerabilities in its system.
The attackers initiated their operation by offering bribes to non-US Coinbase personnel, predominantly in India, resulting in the acquisition of confidential customer information, such as identification and banking details. In exchange for silence, they demanded a ransom of $20 million from Coinbase.
In response, what could the leader in the cryptocurrency industry, which manages a hefty portion of the estimated $122 billion Bitcoin ETF reserves, possibly do?
Coinbase promptly launched a $20 million reward for information that could lead to the apprehension of the culprits and pledged to cover 100% of user losses, which are projected to amount to approximately $400 million.
Despite Coinbase’s efforts, significant impacts were felt throughout the crypto market as major currencies plummeted in value. For instance, Ripple experienced a 6% decline, and Bitcoin dropped to $104K, down from its previous $105K.
So, how can crypto enthusiasts better protect their assets? The answer lies in adopting non-custodial wallets like Best Wallet.
Keep reading to dive deeper into the details surrounding the Coinbase cyberattack.
The Coinbase Incident: A Breakdown
The criminals employed a seemingly foolproof, four-step plan:
- Identify employees and contractors in India with access to Coinbase’s essential support infrastructures.
- Coerce these individuals into sharing sensitive customer information over an extended period.
- Request a ransom from Coinbase to either erase or publicly disclose the information.
- Reap the benefits of the manipulation.
Fortunately for Coinbase, the breach’s impact was relatively constrained, affecting less than 1% of its user base. Moreover, the compromised data did not include crucial elements such as passwords or seed phrases, thus minimizing potential damage.
In essence, the criminals’ leverage was weaker than they had anticipated.
Coinbase reacted effectively, ensuring a 100% reimbursement for user losses while offering a reward to aid in capturing the perpetrators.
In the aftermath, numerous cryptocurrencies, particularly those ranked among the leading altcoins, suffered market setbacks on May 12.
Bitcoin saw a decline of 3.96%, slipping from a daily peak of $105,493 to $101,311, while Ethereum dropped by 3.9%, from $2,559 to $2,459.
Overall, the announcement of the Coinbase hack led to an estimated loss of $100 million in the total crypto market cap.
While the repercussions were significant, the situation could have spiraled out of control. Had sensitive seed phrases been leaked, user assets would have faced uncontested risk.
Given the estimated losses of $400 million, Coinbase’s capacity to fully reimburse users remains in question.
This revelation is likely to leave many Coinbase users and exchange clients feeling uneasy.
This underscores the importance of non-custodial wallets, which provide an added layer of security, ensuring that you control your own keys. Best Wallet is at the forefront of this movement and is currently offering presale opportunities for its ecosystem token, Best Wallet Token.
Let’s explore what this entails.
Take Charge of Your Assets with Best Wallet
Best Wallet is an anonymous, non-custodial, multi-chain wallet, actively developing its Web3 ecosystem. The advantage of non-custodial wallets is that significant breaches, like those affecting Coinbase, Bybit, and FTX, will not jeopardize your holdings.
Currently, Best Wallet supports five major blockchains: Ethereum, Binance Smart Chain, Polygon, Bitcoin, and Base. Its roadmap includes support for over 60 additional chains, enhanced anti-fraud measures, and the highly anticipated Best Card.
In addition, the wallet allows users to buy, sell, swap, and stake crypto, similar to other popular wallets like Metamask, Trustwallet, and Exodus. Users also have access to cross-chain swaps and improved security provided by Fireblocks MPC (cloud backups).
Having been thoroughly audited by Coinsult and boasting a community of over 63,000 followers on X, Best Wallet exemplifies transparency, security, and strong community support.
Engaging in the $BEST presale can yield further advantages, including lower transaction fees and increased staking rewards. This presale has already generated over $12 million, with the current token price set at $0.025035.
With an investment of $300, you could acquire 11,983 $BEST tokens, which can generate an impressive 199% annual APY through staking, potentially yielding 35,829 tokens or $896 within a year.
Furthermore, our $BEST price forecast predicts a remarkable 187% increase by the end of 2025 (from $0.025035 to $0.072). This could mean transforming an initial investment of $300 into $2,579 in under seven months through staking at the present APY.
To purchase Best Wallet Token, visit the presale site, connect your wallet (or utilize Best Wallet), and select ‘Buy.’ It’s as straightforward and accessible as it sounds.
Are Non-Custodial Wallets the Future of Crypto?
The recent Coinbase hack may not be the last significant security failure in the crypto sector.
However, this breach, involving a leading US cryptocurrency company and the first crypto exchange listed on the S&P 500, illustrates the inherent risks of keeping funds in exchanges.
Best Wallet and Best Wallet Token are pioneering a shift toward self-custody, empowering users to take control of their asset security.
In the future, non-custodial wallets could become prevalent if exchanges fail to improve their security measures.
It is essential to note that investing in crypto presales carries inherent risks. The market is notoriously volatile, and significant fluctuations can occur unexpectedly (as seen in the wake of the Coinbase hacking incident). Always invest responsibly and perform thorough research before making any financial commitments.
