According to data shared on February 3, between December 2024 and January 2025 alone , Coinbase users lost $65 million. However, the researchers noted that complaints that were reported to the police but could not be accessed were not included in the calculations, so the actual losses could be much higher.

Coinbase Users Targeted

According to the report, most of these scams were carried out by India-based threat actors targeting US users.

While Coinbase warned its users not to use VPNs, it turned out that the scammers were automatically blocking VPNs and redirecting Coinbase users to fake sites. “This suggests that Coinbase failed to diagnose the real problem, ” the researchers said.

In particular, the following vulnerabilities were reportedly exploited:

• Use of legacy API keys
• An error in the verification code system
• Laundering stolen funds through Coinbase

ZachXBT criticized Coinbase for

• Failure to properly report stolen wallet addresses
• Ineffective customer support team
• Lack of support in non-US time zones

The researchers emphasized that Coinbase needs to take urgent measures because millions of dollars are going to scammers every month.

Scammers’ Revelations Shocking

In November 2024, a Coinbase phishing scammer admitted to making at least five figures a week by targeting company executives and software engineers.

Nick Neuman, CEO of Bitcoin wallet provider Casa, quoted a scammer as telling him:
“We made $35,000 two days ago. We’re doing this for a reason, there’s big money in it.”

The scammer also stated that they only target people with at least $50,000 in assets.

The inability of Coinbase’s security policies to prevent such attacks once again highlights the platform’s weaknesses in user security.

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