Coinbase leak prompts KYC criticism from crypto execs
Crypto execs on X are calling for know-your-customer (KYC) protocols to be scrapped after leading US exchange Coinbase disclosed that its staff had accepted bribes and leaked users’ personal data. The leak, shared by Coinbase on Thursday and documented in a K-8 filing, revealed how overseas support staff were corrupted by bad actors into stealing information, including home addresses, government IDs, and bank account details. This data was then leaked to individuals for use in social engineering scams designed to steal user funds, which may cost Coinbase between $180 million and $400 million in reimbursements . To add to Coinbase’s troubles, the Securities and Exchange Commission is now reportedly investigating whether the firm exaggerated its user numbers. In response to the leak, the CEO of crypto analytics firm Nansen, Alex Svanevik, called for Donald Trump to “dismantle” the KYC and anti-money-laundering (AML) “complex.” Coinbase just proved again ...