Coinbase is now facing a lot of public attention after ZachXBT, a crypto investigator, broke out news of a shocking social engineering scam that targeted Coinbase users, taking away a whopping $300 million of losses.
Generally, scammers impersonate agents of Coinbase support to trick users into revealing sensitive information like private keys and login information. This investigation by ZachXBT took the security breach to a new extent, highlighting the increasing dangers in the crypto domain.
1/ Over the past few months I imagine you have seen many Coinbase users complain on X about their accounts suddenly being restricted.
This is the result of aggressive risk models and Coinbase’s failure to stop its users losing $300M+ per year to social engineering scams. pic.twitter.com/PjtX7vmjqc
— ZachXBT (@zachxbt) February 3, 2025
ZachXBT Uncovers The Scale Of Social Engineering
Social engineering scams have been around for a while in the crypto world. However, ZachXBT’s probe shows that scammers are using clever tactics to deceive Coinbase users. Attackers pretend to be official support staff to trick people into giving them important account information.
Image: Kaspersky
Many users have fallen for these methods. Even though Coinbase has safety nets in place, this scam shows how easily users can be tricked if they don’t know enough about these dangers.
3/ Let’s walk through how these Coinbase social engineering scams work.
A victim reached out to me last month after losing ~$850K.
Graphing out this theft lead to a consolidation address with 25+ other victims tied to ‘coinbase-hold.eth’.
Theft address… pic.twitter.com/y8dRxwlOO6
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Author: Christian EncilaDid you like this?
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