Crypto Scam Nets $4 Million Impersonating Coinbase Support

An investigation by prominent on-chain analyst ZachXBT has uncovered a sophisticated scam operation where a New York-based con artist allegedly stole millions of dollars from victims by impersonating Coinbase user support staff. The scam, orchestrated by a man named Christian Nieves, who goes by the online aliases “Daytwo” and “PawsOnHips,” involved a small call center group that coerced victims into setting up compromised Coinbase wallets on phishing sites. Nieves, who also worked as a caller, is accused of stealing approximately $4 million from unsuspecting users.

The scam operation involved multiple individuals, including a henchman named Justin, who went by the alias “Paranoia.” Justin allegedly executed a $240,000 heist of an elderly victim’s Bitcoin wallet. According to ZachXBT, a portion of this stolen amount was deposited into the crypto betting site Roobet, while the rest was converted into Monero (XMR). ZachXBT traced the casino deposit address, linking it to over 30 suspected thefts, suggesting that there may be many additional victims who have not been directly linked to the scam.

The investigation revealed that Nieves has a gambling problem, which escalated to the point where he began stealing from his accomplices. The on-chain evidence shows that casino deposits became smaller as Nieves lost more funds, indicating a pattern of financial desperation. Despite the extensive digital and on-chain evidence, Nieves and his alleged accomplices have not been charged by law enforcement. ZachXBT believes that the case should be relatively straightforward for authorities to prosecute, given the amount of evidence available. However, most of the victims’ money is likely unrecoverable, as it has been lost to gambling.

The scam highlights the growing threat of impersonation fraud in the cryptocurrency industry, where scammers exploit the trust users place in legitimate support services. The incident underscores the importance of vigilance and due diligence when interacting with support staff or setting up wallets, as well as the need for enhanced security measures to protect users from such fraudulent activities. The case serves as a stark reminder of the risks associated with cryptocurrency transactions and the need for users to be cautious and informed.