The U.S. Department of Justice (DOJ) has launched an investigation into a recent cyberattack on Coinbase (COIN), one of the world’s largest cryptocurrency exchanges. The breach on May 11 exposed sensitive customer data, such as names, addresses, and emails, though login credentials and passwords remained secure.
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Coinbase estimates the attack could cost the company between $180 million and $400 million, as it works to fix the damage and reimburse affected users. The hackers are said to have blackmailed Coinbase, demanding $20 million for not leaking stolen data.
The DOJ’s criminal division in Washington is looking into the breach. The company clarified that the regulator is investigating the cybercriminals behind the attack, not Coinbase itself. Importantly, COIN has rolled out security upgrades and launched a $20 million bounty to track down the culprits.
Rise in Crypto Hacks Raises Security Concerns
The attack on Coinbase comes as crypto exchanges face pressure to strengthen security as cyberattacks rise. Global regulators are tightening oversight, especially after major breaches like the Bybit hack, where $1.4 billion in Ethereum (ETH-USD) was stolen.
Also, Binance and Kraken witnessed similar cyberattacks last week, but managed to block them before losing any customer data.
It is worth noting that cybercriminals are now using social engineering tactics to manipulate users to provide private data. This gives unauthorized access and removes the need to hack the system itself.
What Is the Price Target for COIN Stock?
Turning to Wall Street, COIN stock has a Moderate Buy consensus rating based on 11 Buys and 11 Holds assigned in the last three months. At $261.50, the average Coinbase stock price target implies a 0.94% downside potential.
