Coinbase says hackers bribed staff to steal customer data, demanding $20M ransom

And what that means is that

1) If you lose access to your account (through either your own fault, or coinbases fault) that the process of recovering it may not be so straightforward anymore.

2) Hackers can try to “recover” accounts now using this leaked info.

This is a huge problem. What coinbase needs are IRL offices where you can go and do things like account recovery, and where people trying to steal money can be caught and prosecuted (and makes a huge barrier for the overseas thieves who are usually doing this)

The only solution here is: hardware 2 factor like yubikeys.

What you've described is the same thing that many Crypto enthusiasts call a "Bank"