Coinbase’s CEO Brian Armstrong announced on December 26 that a former employee was arrested in India. He thanked the Hyderabad Police but did not reveal how the person is connected to past company security issues. In May 2023, Coinbase revealed that cyber criminals bribed rogue overseas support agents to steal customer data. The attack affected 69,461 users. Criminals tricked insiders to access customer support tools and targeted customers pretending to be Coinbase. They then tried to extort $20 million from Coinbase. The exchange said wallets, login info, and private keys were not compromised. "We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice," Armstrong said. This is not Coinbase’s first security problem. In May 2023, the U.S. SEC settled insider trading charges against a former Coinbase product manager and his brother. Indian police are expected to share more details soon.