ZachXBT, a blockchain analyst, has reported that Coinbase users have lost at least $150 million due to social engineering scams. One victim lost a staggering $11.5 million in Bitcoin on Base, Coinbase’s layer-2 network. This situation raises serious concerns about the security of this major US cryptocurrency exchange.
On January 31, ZachXBT highlighted another significant theft. A user lost 110 cbBTC, which is Coinbase’s wrapped Bitcoin, after falling for a scam. The stolen cryptocurrency was quickly laundered through various instant exchanges, making it nearly impossible to recover. The scammers used multiple platforms to swap, bridge, and mix the funds, combining them with other stolen assets on Ethereum.
ZachXBT believes this incident is part of a larger trend. He estimates that at least $150 million has been stolen from Coinbase users in the past year. This figure might be much higher, as it only includes independently verified cases. He stated, “Coinbase has a serious fraud problem,” and noted that he continues to find more cases regularly.
Coinbase has not publicly addressed the latest theft. Scammers often impersonate Coinbase support, using phishing emails and fake customer service calls to steal login information. Once they access an account, they quickly transfer and hide the stolen funds.
Similar incidents have occurred before. In December, a vendor lost $15.9 million, and in October, an imposter stole $6.5 million by pretending to be part of Coinbase’s support team. ZachXBT mentioned that many users contact him after falling victim to these scams. He criticized Coinbase for not responding adequately, claiming that no other major exchange faces such a widespread issue.
As the largest cryptocurrency exchange in the US, Coinbase faces increasing pressure to enhance its fraud prevention measures. If these scams continue, they could further erode trust in centralized exchanges, highlighting the urgent need for better security protections.
