Coinbase users lose over $65m in widespread scams

Crypto Sleuth Zachxbt urges Coinbase to act after its users were scammed for tens of millions from December 2024 to January 2025 only.

In a viral thread This has reached millions of views, Zachxbt and Zeroshadow Web3 Tanuki42 security investigator compiled the reports from Jamming users who have lost their funds in a social engineering series scams in December 2024 until January 2025.

After gathering Coinbase withdrawal reports from X users via direct messages, the duo concluded that at least $ 65 million had been stolen from Coinbase user accounts during a period of two months. However, Zach claims that this estimate is probably much lower than the real number, because it does not include Coinbase support and police reports.

Zach plans that if these scams persist, Coinbase users could lose more than $ 300 million per year due to the fall of social engineering scams.

Crypto.News contacted Coinbase to comment, but has not yet received an answer.

In recent months, dozens of Coinbase users have complained online that their accounts are suddenly restricted. Something that the exchange nicknamed “Fud / Disinformation”, saying that the rise of new users and former users reactivating their accounts after the US elections led to an increase in fraudulent attempts up to three times.

“Our fraud prevention systems act as planned and allowed customers of tens of millions of losses in November”, “,” wrote Coinbase support.

However, Zach said that these restrictions were the direct result of “aggressive risk models and Coinbase failure to prevent its users from losing $ 300 million per year against social engineering scams.”

Scammers pretending to be a coinbase support

Social engineering crooks fly funds from Coinbase users by calling them on a Usurpé number and telling them that their account has been compromised. The crook would then send a false e-mail from Coinbase with a false case ID, asking the victim to transfer funds to a Coinbase portfolio while “supporting” checked the security of their account.

The link on the false e-mail would lead them to a cloned Coinbase site, which allows the crooks to send different guests to the target via e-mails usurped using panels.

Zachxbt said that Coinbase had failed to “diagnose the real problem”, but also recognized some of the things that crypto exchange has done well, such as providing recovery tools for users who deposit assets not taken In charge and providing a good stable yield and on ramp / ramp mechanisms excluding ramp.

He urged Coinbase to consider making the telephone numbers optional for advanced users with authenticator applications, creating an application specifically for beginners or elderly users who do not authorize withdrawals, improvement of awareness awareness The community, as well as to take legal action against crooks and transunion based in the United States for negligence in the name of users, because it is the main tool used by cybercriminals.

“Coinbase must urgently make changes because more and more users are scammed for tens of millions per month,” said Zachxbt.