Coinbase has incurred a $400 million loss following a security breach connected to a TaskUs employee in India. The breach, which impacted less than 1% of Coinbase's monthly users, involved a $20 million ransom demand and exposed vulnerabilities in the company's outsourced services. Sensitive data was stolen by a network led by Ashita Mishra, raising concerns about Coinbase's delayed disclosure of the incident. The breach specifically targeted customer-held cryptocurrencies on the platform, prompting class-action lawsuits and highlighting potential regulatory challenges. Coinbase CEO Brian Armstrong acknowledged that the company was aware of the issue before making changes to agreements, underscoring the need for a comprehensive security overhaul.