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

The problem is that it seems like the data that leaked is also the data that would be used to do account recovery.

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.

The Crypto industry continues their speedrun of rediscovering all of the reasons for why the global financial system exists.

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

Coinbase is identical to a bank because it holds customer funds. Your comment isn't quite the dunk you think it is. Blockchains allow money to be held anonymously without any banks involved. Centralized exchanges are just profiting on speculation and probably should be banned.

No they don’t. “Cryptocurrency” isn’t money at all. Just because you can trade it in for money, doesn’t make it so. I can also trade in my hat to the Buffalo Exchange for money. But my hat is not money.