Support Agents Allegedly Bribed, Millions Affected

In a lawsuit filed on May 16 in a New York federal court, plaintiff Paul Bender alleged that Coinbase failed to protect user data during a serious breach. The incident, which began on May 11, involved cybercriminals bribing support agents to gain access to internal systems.

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The stolen data included names, addresses, phone numbers, emails, the last four digits of Social Security numbers, bank details, driver’s licenses, passports, and account data like balances and transaction history. The attackers reportedly demanded a $20 million ransom, which Coinbase refused to pay.

At Least Six Lawsuits Allege Negligence, Delayed Response

Between May 15 and 16, at least six lawsuits were filed against Coinbase. Plaintiffs allege the exchange failed to maintain proper security measures, delayed informing users, and offered no meaningful steps to mitigate harm.

One California-based lawsuit demands Coinbase delete all sensitive data and hire independent auditors to evaluate its systems. Another suit added a claim of unjust enrichment, arguing that Coinbase underinvested in data security to boost profits.

In a filing with the U.S. Securities and Exchange Commission (SEC), Coinbase estimated potential reimbursement costs to range between $180 million and $400 million. The company has pledged to compensate users who were tricked into sending crypto due to phishing scams linked to the data breach.

Following the news, Coinbase (COIN) shares initially dropped 7% to $244, but recovered with a 9% gain, closing at $266 on May 16.

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The post Coinbase Faces Legal Firestorm After Massive Customer Data Breach appeared first on Coin Engineer.

A data breach involving customer information, coupled with an ongoing SEC investigation into potentially misleading user statistics from 2021, led to a sharp market response.

Shares Slide 7% Amid Rising Concerns

On the evening of May 15, Coinbase stock dropped by 7%, falling to $244 in after-hours trading. Two simultaneous developments triggered this decline:

1. An investigation by the Securities and Exchange Commission (SEC) into Coinbase’s previous claim of having over 100 million “verified users” in 2021.
2. A serious data breach caused by compromised third-party support staff.

The SEC has questioned the accuracy of these user metrics as part of a probe that began during the Biden administration. Coinbase stopped reporting the metric in 2022, opting instead to disclose “monthly transacting users,” which it deems more relevant.

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Chief Legal Officer Paul Grewal stated that while Coinbase disagrees with the continuation of the investigation, it will fully cooperate with the SEC to bring it to a close.

Ransom Refused, Compensation Expected

In a separate incident, Coinbase revealed that attackers used internal support access to leak data from a limited number of accounts. The attackers demanded a $20 million ransom, which Coinbase firmly refused to pay.

However, the company pledged to compensate affected users, estimating total remediation costs to range between $180 million and $400 million.

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The post Coinbase Hit By Data Breach And SEC Probe, Stock Falls 7% appeared first on Coin Engineer.

Vana’s core mission is to provide a transparent and fair data-sharing model where users have full control over their data. The Vana network operates on a decentralized infrastructure, enabling individuals to encrypt and pool their data. This data is then shared on a permissioned basis, allowing users to voluntarily share their data and earn rewards.

Key Features of Vana

DataDAOs are community-driven data pools where user data is aggregated. These pools provide valuable resources for applications like AI model development, creating significant value. Users are rewarded with tokens based on the data they contribute.

Token Rewards incentivize users through the Proof-of-Contribution mechanism, where they earn VANA tokens for their data contributions. These tokens can be used for data management and other ecosystem activities.

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Data Privacy and Security are at the heart of Vana’s infrastructure. Advanced encryption and permission mechanisms ensure that user data remains private. Data is only shared under specific conditions and with user consent. Companies can securely access this data without duplication risks.

VANA Token and Tokenomics

The native token of the Vana ecosystem, VANA, plays a crucial role in supporting the platform’s functions. Users are rewarded with VANA tokens based on the quality and quantity of their data contributions. Beyond rewards, VANA tokens grant governance rights, enabling holders to participate in decision-making processes within the network. Additionally, companies and AI models use VANA tokens to access data within the ecosystem.

VANA’s tokenomics model is designed to ensure fairness and sustainability. With a total supply of 1 billion tokens, the allocation is as follows:

• 50% for community rewards, distributed based on user data contributions.
• 20% reserved for team and development, focusing on technological infrastructure.
• 15% for ecosystem growth and marketing efforts.
• 10% allocated to early investors.
• 5% set aside for liquidity reserves in exchanges.

This distribution ensures that a significant portion of the tokens benefits the community while supporting the network’s growth and development.

Why Choose Vana?

In today’s digital economy, data is one of the most valuable resources. High-profile deals, such as the $200 million data sale between Reddit and Google or the $250 million agreement between NewsCorp and OpenAI, highlight the massive economic potential of personal data. Yet, the profits rarely reach the users who generate this data. Vana disrupts this imbalance by ensuring users can share in the revenue generated by their data.

Through its tools, Vana empowers individuals to decide how their data is used. For example, users can share health, social media, or genetic data via DataDAOs and earn directly from these contributions. Moreover, Vana’s compliance with global regulations such as GDPR and CCPA allows users to manage their data seamlessly and securely.

Join the Data Revolution with Vana

Vana redefines data ownership, enabling individuals to become the true proprietors of their data while earning from the AI and data economy. Join the open data economy with Vana and regain control over your personal information.

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The post What is Vana (VANA)? Empowering Users with the Value of Their Data! appeared first on Coin Engineer.