Coinbase Users Lose $150M in Social Engineering Scams
1min read Coinbase Users Warned Amid $150 Million Fraud Crisis Linked to Social Engineering Scams on Base Network
Coinbase users have been warned of a growing fraud crisis linked to social engineering scams on the Base network, with an estimated $150 million stolen from customers. The latest incident involved a user losing $11.5 million in cbBTC, Coinbase's wrapped Bitcoin product, after falling victim to a social engineering scam on the Ethereum layer-2 network backed by the exchange.
Blockchain investigator ZachXBT uncovered the exploit and linked it to a broader pattern of fraud affecting Coinbase users. He estimates that scams of this nature have drained at least $150 million from Coinbase customers, with the actual figure likely being multiples of this number. Coinbase has not yet commented on the latest exploit, but scams involving fraudsters impersonating Coinbase support have become increasingly common.
These attackers use phishing emails, spoofed calls, and other deceptive tactics to trick victims into revealing private keys or login credentials. Once they gain access, they drain wallets, move funds, and take control of accounts. Last December, a Coinbase Commerce vendor lost $15.9 million with no intervention from the exchange's anti-money laundering (AML) system. Before that, an imposter stole $6.5 million in October 2024 using a phishing scheme while pretending to be part of Coinbase's support team.
ZachXBT stated that he receives inbounds every week from Coinbase users falling for targeted social engineering scams, resulting in millions of dollars of losses each month. He criticized Coinbase's leadership for being out of touch with actual threats and citing obscure internal policies to avoid responsibility. As the largest crypto exchange in the US, Coinbase faces increasing pressure to improve fraud detection and safeguard its customers from sophisticated cyber threats.
If these scams continue unchecked, they could further erode trust in centralized exchanges and highlight the urgent need for improved security protocols. The recent loss of $11.5 million on Coinbase underscores a significant vulnerability within the exchange's operations. With estimated losses exceeding $150 million due to similar scams, the necessity for heightened security measures and prompt consumer protection becomes critical. The industry must respond swiftly to restore trust and prevent future occurrences.
