Coinbase CEO Brian Armstrong has emphasized a 'zero tolerance' policy following the arrest of a former support agent by Hyderabad Police in connection with a $20 million bribery scheme. The incident, which occurred in January 2025, resulted in a $400 million recovery cost for Coinbase and affected market sentiment, as reflected in the fear and greed index. In response to the breach, Coinbase offered a $20 million bounty rather than succumbing to the ransom demands. This incident is considered one of the top ten DeFi breaches, highlighting the need for vigilance in the volatile altcoin market. Following the announcement, Coinbase shares experienced a 1.18% decline.