ZachXBT Reveals Coinbase Users Lost $150 Million in Social Engineering Scams

Blockchain investigator ZachXBT has uncovered a series of social engineering scams targeting Coinbase users, resulting in a staggering loss of over $150 million. The scams, which involve fraudsters impersonating Coinbase support, have left users vulnerable and the exchange facing growing security concerns.

On January 31, ZachXBT discovered an exploit on Base, Coinbase's layer-2 network, where a user lost 110 cbBTC, valued at $11.5 million. This incident is part of a broader pattern of fraud affecting Coinbase users, with ZachXBT estimating that scams of this nature have drained at least $150 million from Coinbase customers.

The stolen cbBTC was swiftly laundered across multiple instant exchanges, making recovery nearly impossible. ZachXBT pointed out that this incident is part of a growing trend, with multiple Coinbase users suffering similar losses. 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, "I receive inbounds every week from Coinbase users falling for targeted social engineering scams which result in millions of dollars of losses each month. Coinbase does not help the victims and no other major exchange has this same issue. The leadership is completely out of touch with actual threats and cites obscure internal policies to abscond itself of any responsibility even when it’s the right thing to do."

These incidents highlight growing security concerns for Coinbase users. As the largest crypto exchange in the US, the company faces increasing pressure to improve fraud detection and safeguard its customers from sophisticated cyber threats. If these scams continue unchecked,