Coinbase Users Lose $300M Annually to Social Scams

Coinbase Users Lose $300M Annually to Social Scams, Warns ZachXBT

Crypto sleuth ZachXBT has raised alarm about the growing issue of social scams targeting Coinbase users, with an estimated $300 million lost annually. In a recent X post, ZachXBT revealed that Coinbase users have lost over $65 million to social engineering attacks in the past two months alone. The actual figure may be higher, as it does not include unreported cases.

Scammers are exploiting stolen personal data to deceive users by sending fake emails that mimic Coinbase's official communications. These emails often include false case IDs, prompting users to transfer funds to scammer-controlled wallets. ZachXBT noted that two main groups, skids from the Com and threat actors located in India, are primarily targeting US customers.

ZachXBT advised Coinbase to enhance security by making phone number inputs optional, creating a restricted account type for new users, and improving community education on scam prevention. Coinbase has not yet commented on the matter.

Meanwhile, World Liberty Financial, backed by Eric Trump, has elicited crypto community backlash after selling ETH, WBTC, and other DeFi tokens worth over $300 million. The sale, worth $316.8 million, was made on Coinbase Prime. WLFI defended the move, stating that it was reallocating assets for ordinary business purposes and not selling tokens.

In other news, South Korea's Gwacheon City will roll out a virtual asset electronic seizure system next month to track and confiscate crypto from tax evaders. The system will enable authorities to identify hidden assets and enforce tax collection. The city has identified 361 individuals who owe more than $2,060 in local taxes, with total arrears reaching about $12.9 million.

Coinbase is pushing US regulators to let banks offer crypto services. In a letter sent to the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), Coinbase called for clear guidance on banks providing and outsourcing crypto custody and execution services. The exchange wants regulators to confirm that banks can legally serve crypto businesses.