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.

> 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)

That's just a bank.

Watching crypto enthusiasts run into every problem that society already tackled with in the past when developing currency and its controls, and then coming up with solutions that look exactly the same as what dirty fiat currency uses, has been a source of much entertainment the past few years

This is an exchange problem, not a crypto problem. You don’t need an exchange to hold crypto.

But they need exchanges to get real money to flow in and out of cryptocurrency easily. Without it, cryptocurrency by itself would likely be worth far less than it is today.

Yes that's true, but no need to hold your crypto there as a permanent storage. Once your fiat is exchanged to crypto, immediately transfer the crypto to your private wallet.

This just trades the unsolved exchange hacking problem for the unsolved lost/stolen keys problem.

Theft or loss has always been a problem since life evolved on Earth.

I don't think anyone claimed that crypto was un-losable or un-stealable. It's not magic.

https://cryptosteel.com