Coinbase Global Inc. recently disclosed a social engineering hack that exposed customer data, raising concerns about the security risks associated with Know Your Customer (KYC) processes in the cryptocurrency industry. Similar phishing attacks targeted major crypto exchanges Binance and Kraken, but both companies successfully thwarted these attempts without any loss of customer data by employing artificial intelligence and strict employee access controls. The incident highlights that the primary security vulnerability in crypto platforms lies not in blockchain technology itself but in human factors and centralized repositories of sensitive user information. Industry experts emphasize that while KYC is essential, its current centralized implementation creates significant risks, underscoring the need for improved security measures to protect digital identities and prevent wrench attacks and phishing scams.