Coinbase Security Issues: $11.5 Million Stolen by Scammers
Date: 2025-02-03 Author: Oliver Abernathy Categories: BUSINESS
One of the customers lost 110 cbBTC, equivalent to $11.5 million. The coins were stored on the second-layer Ethereum network, Base.
The information about the theft was revealed by blockchain detective ZachXBT, who connects this case to a larger fraud scheme affecting the crypto exchange's customers. According to him, the stolen cbBTC were quickly laundered through several crypto exchanges. The fraudsters sold the tokens and transferred the funds through several platforms, combining them with other stolen assets from the Ethereum network. Thus, it becomes almost impossible to get the money back.
ZachXBT claims that this case is just one of many similar ones. He estimates that Coinbase users have lost at least $150 million due to fraud, adding that the actual amount of damage could be much higher. “Every month I receive messages from users who have fallen victim to social engineering. The losses amount to millions of dollars, and Coinbase does not help the victims. This only confirms a huge security problem,” he shares his observations.
Coinbase has not yet commented on this incident. However, problems with fraud and phishing on the platform are nothing new. Attackers use various methods of deception, such as phishing emails, fake calls, and other methods to gain access to users' personal data. After that, they take over accounts and steal funds.
In December 2024, another case resulted in the loss of $15.9 million from a seller through Coinbase Commerce. Notably, the exchange's anti-money laundering (AML) system did not respond to suspicious transactions. In October of the same year, a fraudster posing as a customer service representative stole $6.5 million.
"Coinbase faces serious security issues. Incidents occur regularly, and the company's management refuses to acknowledge the scale of the threats. The exchange must improve its security measures, otherwise, such incidents will continue," ZachXBT concludes.
These incidents highlight the importance of improving user protection at the largest crypto exchange in the United States. If Coinbase does not update its fraud detection methods, the company risks losing customer trust and being exposed to even more damage.
