Coinbase data scandal sparks calls to scrap KYC

A Coinbase insider scandal exposed 70,000 users’ personal data, triggering debates on rethinking crypto’s KYC systems.

Coinbase’s recent data breach is prompting renewed calls to remove Know Your Customer (KYC) requirements in licensed cryptocurrency exchanges.

Illicit actors bribed the exchange’s overseas customer service agents in December 2024 to gain access to the personal information of 70,000 users. In May, Coinbase admitted that hackers had obtained data such as government-issued ID photos and home addresses.

“All this security theater needs to be abolished asap. Time and again it only benefits hackers and extortionists,” said pseudonymous developer Banteg on X. “KYC actually enables crime.”

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