Coinbase Data Breach Will ‘Lead to People Dying,’ TechCrunch Founder Says

The founder of the internet news Techcrunch claimed that Coinbase was recently Data violation “They will lead people to die,” in the midst of a wave of attempts at the abduction that targeted greater than high -value cryptocurrencies.

TechCrunch founder Michael Arrington added that it should be a point of thinking for regulators to review the importance knowledge that (KYC), a procedure that requires user to confirm its identity on the platform. He also called for prison for executives who do not “adequately protect” customers data.

“This hack – which includes home addresses and account states – will lead people to die. It’s probably already,” he twitter. “Human cost, denominated in misery, is much greater than $ 400 million or so they think it will actually cost companies to make up for people.”

On Thursday, Coinbase announced that the Cyber ​​-Criminals tried to blackmail the exchange into payment of $ 20 million Bitcoin Through stolen customers’ data – which he refused to pay. Instead, the company brought a $ 20 million prize for any information that would lead to the “arrest and belief” of the attacker. Crypto exchange is also pledged To make up for any customers who were deceived in salivation to the attackers.

The US Ministry of Justice has since opened an investigation into data violation, Bloomberg later reported.

But for Armington, which also founded Venture Capital Crunchfund and the Hedge Fund Arrington Capital, that is not enough. He believes that people are in the immediate physical danger after breach, which has exposed data, including names, addresses, telephone numbers, e-mails, images of government ID and more.

Arrington said it was “long time” in an investor in Coin but he did not respond to DecipherA request for a comment at which the capacity this investment was made. Coinbase also did not answer DecipherRequest for comment.

Attempts to abduct cryptocurrency

Numerous major attempts to abduction have increased concern about the safety of the cryptocurrency owner with a significant share.

In January co -founder of Ledger David Balland is abducted From his house in France, along with his wife. The couple was trapped for about 24 hours, with the kidnappers “Reading” Balland’s hand As part of their redemption request, before the local implementation of the law recovered the executive and his wife.

In March, popular Streamer and only personality personality Focused “Naas Is the victim of an invasion of the house by Three armed attackers who physically attacked her as he ordered her to transfer his bitcoin to them. She managed to fire the gun, causing the attackers to escape from the scene.

In May he was the father of a Kripto millionaire saved French authorities After he was hostage for days – but not without his finger cut off the kidnappers. A week later it was Attempt but failed abduction Women and her child, relatives of the leading figure in the crypto industry of France.

As a result of these and other incidents, said physical security company based in Amsterdam Bloomberg That he noticed progress in clients with a large crypto possession, before breach of Coinbase.

KYC data risks

Arrington believes that, after these attacks, the crypto companies dealing with user data must be much more careful than they are currently.

“Combining these Kyc -us Corporate maximization of profits and lightweight hack penalties like these means that these questions will continue to happen,” he twitter. “Both governments and corporations should be enhanced to stop it. As I said, the cost can only be measured in human suffering.”

Former Coinbase Director General Balaji skewed pushed to Arrington’s position that the managers should be punished, claiming that the regulators are Forcing KYC on troubled companies.

“When enough people die, laws can change,” Arrington return.