Coinbase CEO Credits Indian Police After Ex-Agent Arrest in $400M Hack

Coinbase has moved closer to resolving one of its most damaging security incidents after Indian police arrested a former customer service agent tied to a massive data breach. The arrest follows months of investigation into a scheme that exposed customer information and triggered global law enforcement cooperation. Significantly, Coinbase CEO Brian Armstrong publicly acknowledged the role of Indian authorities, underscoring the growing cross-border response to crypto-related crime.

The case centers on a breach that emerged earlier this year, when Coinbase disclosed that attackers had bribed overseas support staff. Those actions allowed unauthorized access to customer data, raising concerns about insider risk within global outsourcing operations.

Arrest Signals Progress in Global Probe

Indian authorities, led by the Hyderabad Police, detained the former agent after coordinating with Coinbase and other agencies. Besides strengthening the investigation, the arrest highlights India’s expanding role in policing crypto-linked offenses. Coinbase has worked closely with international partners, including U.S. prosecutors, to identify individuals involved in the scheme.

Moreover, the company has emphasized that enforcement efforts will continue as investigators pursue additional suspects. The case reflects a broader shift toward faster information sharing between private firms and public agencies. Hence, the arrest may accelerate further legal actions tied to the breach.

Scope and Impact of the Data Breach

The incident traces back to early 2025, when Coinbase detected unusual activity within its support operations. However, hackers formally contacted the company in May, demanding a ransom after obtaining customer records. Those records included names, addresses, and email contacts, but excluded passwords and login credentials.

Instead of paying the ransom, Coinbase launched an aggressive response strategy. Additionally, the company announced a substantial reward to encourage tips leading to the attackers. Internal estimates placed potential losses between $180 million and $400 million, reflecting customer remediation costs and operational disruption.

Security Lessons and Regulatory Context

The breach exposed vulnerabilities linked to third-party contractors and offshore support teams. Consequently, Coinbase has reviewed internal controls and expanded monitoring of employee access. The case also reinforces the risks facing exchanges operating at global scale, where insider threats can bypass traditional safeguards.

Moreover, the arrest arrives as Coinbase reestablishes its presence in India after regulatory setbacks. The exchange has also challenged U.S. state regulators over jurisdictional authority in separate legal disputes. Together, these developments show a company navigating security, compliance, and expansion simultaneously.