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Coinbase says customers' personal information stolen in data breach

1. Coinbase confirmed a data breach affecting customer identification data. 2. Hacker demanded ransom after obtaining data from internal systems. 3. Cost of incident remediation estimated between $180 million to $400 million. 4. Customer data included social security numbers and financial information. 5. Former support staff were involved; they are no longer employed.

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FAQ

Why Very Bearish?

Data breaches typically lead to decreased customer trust and potential regulatory scrutiny. Examples include declines in stock value following breaches at other tech firms.

How important is it?

The breach significantly impacts operational credibility and shareholder perceptions, particularly regarding data security.

Why Short Term?

Immediate damage to reputation and customer trust could quickly impact stock price. Similar incidents have led to swift negative market reactions.

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