While Coinbase reels from a $400 million breach, rival crypto exchange like Binance and Kraken say they successfully thwarted similar attacks using artificial intelligence and internal safeguards. Hackers reportedly tried to bribe customer service staff across all three exchanges to obtain sensitive user data. Coinbase’s compromised agents leaked names, addresses, KYC data, and balances, fueling fears of phishing and SIM-swap attacks. Binance and Kraken, however, relied on real-time AI monitoring and strict access protocols to block the breach. Their swift response may set a new cybersecurity standard for crypto exchanges under increasing social engineering threats.
AI-Powered Defence Stopped Insider Threats
Even though Binance and Kraken faced a scam similar to the one that attacked Coinbase. Both were equipped to resist the attack. People who wanted access to user information enticed customer service personnel into revealing such data. Hoping to profit from being inside the company. Some employees outside the United States working for Coinbase sent user data and passwords that led to a breach involving approximately 1% of users and a $20 million ransom. Acting differently, Binance and Kraken made sure that their strict internal controls stopped the breach. Customer service activities on Binance are monitored by AI in real time, in various languages.
They are set up to notice suspicious activities, including offers of bribes, and end any dialogue where such attempts are made. Employees cannot access user information unless they receive permission from the customer first. Like other platforms, Kraken uses measures to protect data so staff members cannot see sensitive data unless they have approval. Because of these actions, Facebook and Instagram prevented any problems resulting from the breach. The event underlines the expanding role of AI in cybersecurity, not just to spot attacks. But to find ways that humans are trying to manipulate systems. Since crypto exchange are still highly attractive to attackers, using AI and access control for surveillance is a key step to ensure both trust and reliability.
Social Engineering on the Rise in Crypto
The attacks were not isolated. Sources say that since late last year, hackers have targeted staff at multiple exchanges, including Kraken and Binance, with sophisticated social engineering techniques. These include attempts to impersonate users and lure agents into revealing sensitive information. In one case, scammers posed as wealthy users and contacted agents via Telegram, offering cash in return for access credentials or user data.
Crypto’s bull market appears to be fueling a spike in cyber threats. Coinbase was warned by rival exchanges as early as December 2024, but the breach still occurred. Bloomberg reported that Coinbase began observing suspicious staff behavior in January 2025. The fallout was severe; several agents were fired, and the company is now offering a $20 million bounty for help identifying the hackers. In contrast, Binance and Kraken’s preemptive policies allowed them to dodge similar outcomes. Their experience is a reminder that in crypto, cybersecurity isn’t just about firewalls. It’s about people, policies, and the smart application of AI.
AI and Policy Prove Critical in Crypto Defence
While Coinbase scrambles to recover from a costly breach, Binance and Kraken’s defensive approach highlights the future of crypto security. Their use of AI to monitor insider threats and enforce data access restrictions made all the difference. Social engineering attacks exploit people, not just code, so solutions must include behavior detection and real-time oversight. With crypto assets and user data growing ever more valuable, AI-enhanced vigilance may soon become a basic requirement for exchange operations. As cyberattacks become more targeted and creative, the firms that invest in smart, people-centric crypto security will be the ones that stay a step ahead.
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