Millions Stolen as Scammers Pose as Coinbase Support, ZachXBT Calls for Urgent Action

A wave of social engineering scams has led to Coinbase users losing at least $65 million between December 2024 and January 2025, according to on-chain investigator ZachXBT. He warns that the actual losses could be much higher, potentially exceeding $300 million annually if left unaddressed.

In a viral X thread, ZachXBT and Web3 security investigator tanuki42 compiled multiple reports from Coinbase users who had their funds stolen. Many victims believed they were interacting with legitimate Coinbase support when scammers tricked them into transferring funds. The fraudsters used spoofed phone numbers and cloned Coinbase websites to carry out the scams, exploiting the exchange’s security processes.

Fake Coinbase Support Drains Millions

Scammers posing as Coinbase support agents contacted victims, claiming their accounts were compromised. They followed up with a fake email that appeared to be from Coinbase, containing a fraudulent case ID. The email instructed users to transfer funds into a Coinbase Wallet for verification.

The provided link directed victims to a cloned version of Coinbase’s website, allowing scammers to manipulate the user experience in real time. Through Telegram channels, these criminals advertised phishing kits that could replicate Coinbase’s interface almost perfectly.

ZachXBT Criticizes Coinbase’s Response

Coinbase has denied systemic security issues, attributing the rise in fraudulent attempts to increased account activity following the U.S. election. “Our fraud-prevention systems are acting as expected and have saved customers tens of millions in losses in November alone,” Support wrote.