Coinbase Customer Data Breach Tied to Indian Outsourcing Firm TaskUs, Sources Say
Coinbase, one of the world’s largest cryptocurrency exchanges, is facing scrutiny after new details emerged linking a January data breach to an India-based employee of outsourcing firm TaskUs. According to six sources familiar with the incident, the breach could cost Coinbase up to $400 million and was known to the company months before it was publicly disclosed.
Insider Misconduct Sparks Major Security Breach
At the centre of the breach is a TaskUs employee in Indore, India, who was caught photographing her work screen with a personal mobile phone. According to five former TaskUs employees, she and a suspected accomplice were allegedly leaking Coinbase customer data to hackers in exchange for bribes.
Three of the ex-employees and one source with direct knowledge of the situation confirmed that Coinbase was immediately notified of the incident. The breach became part of a larger criminal campaign, prompting a mass firing of over 200 TaskUs employees, which drew significant media attention in India.
Coinbase Response: Delayed Disclosure Raises Concerns
Coinbase first acknowledged the breach in a May 14, 2025 SEC filing, stating that “support agents overseas” had improperly accessed data. The company claimed it did not realise the full extent of the breach until it received an extortion demand on May 11.
However, the timeline revealed by insiders indicates Coinbase may have known as early as January, raising questions about transparency and breach disclosure obligations.
In a statement to Reuters, Coinbase confirmed that it had cut ties with the involved TaskUs personnel and “other overseas agents,” though it did not name the additional parties.
TaskUs Confirms Employee Misconduct
TaskUs, in a separate statement, said two employees were fired earlier this year for “illegally accessing client information.” While the company did not name Coinbase, a source confirmed the crypto firm was the affected client. TaskUs said it believes the employees were recruited by a larger criminal network targeting the client and other vendors.
Ongoing Investigation and Fallout
It remains unclear if any arrests have been made in connection with the breach. Police in Indore have not responded to requests for comment. The incident has raised renewed concerns about outsourcing cybersecurity, data handling practices, and the vulnerabilities of remote support teams in sensitive industries like crypto.
What You Should Know
- Coinbase may face up to $400 million in losses linked to the data breach.
- The breach was reportedly initiated by TaskUs employees in India taking photos of sensitive customer data.
- The misconduct was discovered internally months before the official SEC filing on May 14.
- Over 200 TaskUs employees were terminated in the aftermath.
- The breach has spotlighted the risks of offshore outsourcing for crypto companies handling sensitive user data.
A Wake-Up Call for the Crypto Industry
The Coinbase-TaskUs data breach underscores the critical need for stronger data security protocols, vendor oversight, and real-time breach disclosure. As Coinbase tightens its controls, regulators and users alike will be watching closely for further fallout.
