A former Coinbase support agent has been detained in India for helping hackers steal sensitive customer information earlier this year. The arrest took place in Hyderabad, Telangana, a major technology hub.
The incident traces back to a breach revealed in May 2025. Rogue agents at Coinbase support reportedly granted hackers access to customer accounts. These criminals demanded a $20 million ransom to prevent the release of stolen data.
TaskUs, the customer support outsourcing firm involved, confirmed that only two employees were directly implicated. However, the company shut down the entire affected department of 226 staff as a precautionary measure. The breach highlighted vulnerabilities in outsourced Coinbase support operations.
The compromised data affected around 69,500 customers. Exposed information included names, birth dates, addresses, and the last four digits of Social Security numbers. For some users, scanned KYC documents were also stolen, increasing the severity of the breach.
Coinbase CEO Brian Armstrong warned that this is only the beginning, indicating that more arrests are likely as investigations continue. The company has been cooperating with authorities to prevent further damage.
This arrest follows charges against Ronald Spektor, a 23-year-old from Brooklyn. Spektor allegedly impersonated Coinbase support to defraud customers of $16 million. His scheme involved convincing victims their accounts were compromised and moving funds to a wallet he controlled. Only $605,000 of the stolen money has been recovered.
The events underscore the importance of cybersecurity in cryptocurrency services. Coinbase has emphasized the need for stronger safeguards, particularly when outsourcing customer support functions. Users are advised to remain vigilant and report any suspicious communication claiming to be from Coinbase support.
With regulatory and legal scrutiny increasing, the company is working to restore trust and ensure customer data remains protected. The arrests serve as a warning that breaches involving Coinbase support personnel will be taken seriously.
In other news read more about: Coinbase Suffers Major Cyberattack, Faces $400M Loss and SEC Scrutiny
