Coinbase is under scrutiny after revealing a data breach tied to its contractor TaskUs. The incident reportedly involved insider misconduct at a support centre in India.

Though the breach was disclosed in May, insiders say Coinbase had knowledge of the issue as early as January.

The incident was traced to a TaskUs agent who allegedly photographed customer data and sold it to hackers. TaskUs fired two staff, saying the breach seemed part of a broader campaign targeting several Coinbase service providers.

Operations in Indore were suspended, impacting 226 staff, most of whom received severance.

Hackers accessed names, addresses, masked banking data, and ID documents, but no funds or passwords were compromised. On 11 May, Coinbase received a$20 million ransom demand.

CEO Brian Armstrong rejected the threat and instead offered a$20 million reward for information leading to the attackers' arrest.

The breach, which affected under 1% of users, has triggered a shareholder lawsuit accusing Coinbase of failing to disclose the incident promptly.

Although its stock dipped 7% after the news, it has since recovered, supported by the company's recent inclusion in the S&P 500 index.

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