Coinbase, a leading cryptocurrency exchange, has responded to reports of a potential data breach involving the compliance platform Au10tix. On June 27, Coinbase stated that it has no knowledge of any breach compromising its customers’ data linked to Au10tix, following claims that employee credentials from Au10tix had been leaked on Telegram.

A representative from Coinbase told Cointelegraph, "We are not aware of any Coinbase data exposure at this time and will continue to monitor the situation." This statement comes in the wake of a report on June 26 indicating that administrative credentials from Au10tix were exposed online for over a year, potentially allowing unauthorized access to sensitive data.

Au10tix, known for its identity verification services used by platforms like Fiverr, TikTok, and Uber, clarified that while an employee credential was leaked, there is no evidence suggesting that customer data has been exploited. The leaked credentials reportedly enabled access to personal information such as names, dates of birth, nationalities, and identification numbers, as well as documents like drivers’ licenses.

Cybersecurity firm SpiderSilk reportedly discovered the leaked credentials on Telegram and demonstrated that they could access customer data from at least one client of Au10tix. However, Au10tix asserted that the credentials have been removed and that no malicious activity or data leakage from their systems has been identified after a thorough security review.

In response to the incident, Au10tix has taken extensive measures to enhance security, including replacing the operational system with more secure alternatives, tightening security controls across all IT assets, and establishing a dedicated team for continuous monitoring.

While Au10tix claims adherence to high industry standards and best practices, the incident underscores ongoing concerns regarding data security and privacy in the cryptocurrency sector. Centralized exchanges like Coinbase are mandated by most jurisdictions to conduct rigorous Know Your Customer (KYC) verification, which involves collecting sensitive personal data to prevent money laundering—a practice criticized by some for potential privacy violations.

Coinbase did not confirm whether it uses Au10tix for storing customer data but affirmed its commitment to safeguarding customer information amid the reported incident. As the situation evolves, stakeholders continue to scrutinize the intersection of regulatory compliance and data security in the cryptocurrency industry.