• Jared Ferguson, a Coinbase customer, is suing the crypto exchange for a $96,000 loss after they faced a SIM-swap hack.
• The crypto community has expressed mixed reactions concerning the case.
• Jack Adams blames Coinbase for the loss citing that Jared could be among the clients whose information fell into the hands of the hackers.
Crypto Client Sues Coinbase Over $96k Hack
A Coinbase client, Jared Ferguson of Staten Island, New York has sued the crypto exchange for a $96,000 lost due to a SIM-swap hack. He claims that his life savings were taken and he contacted Coinbase hoping for compensation, but was refused. He then took legal action in the US District Court of Northern District of California to battle the exchange.
Crypto Community Reacts to Case
The crypto community have shown mixed reactions to this case with some sympathizing with Jared and others standing by Coinbase’s decision not to compensate him for his losses. It has been suggested that Jared’s phone had been hacked and it wasn’t Coibase’s fault and also that last month Coinbase had fallen victim to cybercriminals which resulted in customer data being leaked online possibly contributing to Jared’s losses.
SIM Swaps
SIM swaps are becoming increasingly popular amongst hackers as they can gain access to bank accounts or cryptocurrency wallets by taking control of mobile phone numbers. This is usually done when hackers call up telecom providers posing as customers and gaining access through personal information obtained from other sources such as social media sites or dark web websites where stolen data is traded.
Coinbase Security Measures
Coinbase takes security measures seriously and offers two factor authentication (SMS 2FA) as well as other security features such as biometric authentication options like fingerprint scanning and facial recognition technology on its website and mobile apps in order to protect users from fraudsters attempting SIM swaps or account takeovers . However it appears these measures are not enough against sophisticated hacking techniques used by criminals today who are able exploit weaknesses in systems no matter how secure they seem on paper.
