TaskUs insider breach exposes Coinbase to $400Mn loss, global scrutiny
WASHINGTON D.C., UNITED STATES — A cyberattack exploiting bribed TaskUs employees has compromised the sensitive data of 69,000 Coinbase customers, spotlighting critical vulnerabilities and triggering a costly regulatory and reputational crisis for the crypto exchange.
TaskUs responds with mass layoffs and security overhaul
Unlike conventional cyberattacks targeting technical systems, the Coinbase breach was orchestrated through social engineering and insider collusion within TaskUs, the United States-based business process outsourcing (BPO) managing Coinbase’s customer service since 2017. TaskUs is currently ranked #19 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
Two TaskUs employees in Indore, India were bribed to access and leak sensitive customer information, including names, addresses, government ID images, and account data.
The incident underscores the inherent risks of offshoring critical operations to BPOs, where employees earning $500 to $700 monthly may be susceptible to bribery, raising urgent questions about employee vetting, security protocols, and oversight in outsourced support models.
TaskUs has taken decisive action terminating 226 employees in Indore and investing millions in upgraded security protocols, training, and physical safeguards.
A TaskUs spokesperson told Fortune, “We believe these two individuals were recruited by a much broader, coordinated criminal campaign against this client that also impacted other providers servicing this client.”
The company asserts it was also a victim of a coordinated criminal campaign and is cooperating with law enforcement in both India and the United States. TaskUs continues to defend itself against related lawsuits, emphasizing its commitment to client data protection and ongoing security improvements.
“We place the highest priority on safeguarding the data of our clients and their customers and continue to strengthen our global security protocols and training programs,” a TaskUs spokesperson said.
Coinbase faces regulatory fallout, $400Mn in potential losses
Amid fallout from the breach, the U.S. Securities and Exchange Commission (SEC) is probing whether Coinbase misstated its “verified user” metrics, intensifying regulatory pressure on the embattled exchange.
Coinbase’s chief legal officer, Paul Grewal, dismissed the inquiry as a holdover related to discontinued metrics but acknowledged ongoing cooperation with regulators.
In a regulatory filing with the SEC, Coinbase said it could lose approximately $180 million to $400 million in what could be the biggest security incident in the company’s history.
The SEC probe coincides with Coinbase’s imminent inclusion in the S&P 500 Index, a milestone now clouded by reputational and legal risks. Analysts warn the breach could lead to stricter regulatory scrutiny and tighter vetting requirements for crypto firms, especially those relying heavily on overseas contractors.
Bo Pei, analyst at U.S. Tiger Securities, noted, “The cyberattack may push the industry to adopt stricter employee vetting and introduce some reputational risks.”
Broader implications for India’s BPO sector and crypto trust
The Coinbase breach highlights how low-tech tactics—bribery and impersonation—can circumvent even advanced blockchain security measures.
Unlike high-profile technical hacks such as the $1.5 billion Bybit breach earlier this year, this attack exploited human vulnerabilities within outsourced support teams.
The incident serves as a stark reminder for the BPO sector in India. TaskUs has called related lawsuits “without merit” and vowed to defend itself.
TaskUs emphasizes their commitment to safeguarding client data through enhanced security protocols and multi-million-dollar investments in training and physical security.
“We place the highest priority on safeguarding the data of our clients and their customers and continue to strengthen our global security protocols and training programs,” a TaskUs spokesperson said.
