$150M in Crypto Disappears from Coinbase Users- Here’s what happened!
ZachXBT, along with crypto investigator tanuki42, has uncovered many more recent thefts affecting Coinbase users. He claims that $150M+ is lost each year due to breaches. The real figure is likely even higher.
Coinbase, one of the leading cryptocurrency exchanges worldwide, is under intense scrutiny due to serious security-related issues following alarming discoveries made by blockchain investigator ZachXBT.
Recently, a user on Coinbase lost a staggering 110 cbBTC (approximately $11.5 million) on the Base network last month to scammers. This disturbing scam involved advanced social engineering tactics that exploit human psychology.
Sadly, this incident is not an isolated occurrence; it forms part of a worrisome trend where over threat actors cart away $150 million in cryptocurrency from Coinbase users annually through similar fraudulent activities.
How Did It Happen?
The victim was specifically targeted through various deceptive methods, such as phishing schemes and email spoofing, tricking them to unwittingly give away access to their wallets.
Once the hackers gained access, they rapidly transferred the cbBTC, converted, and laundered through a series of instant exchanges, making the recovery of funds nearly impossible. They skillfully combined the illicit assets with other stolen cryptocurrencies on the Ethereum network, further complicating tracking and recovery efforts.
Transaction records confirm the movement of stolen funds:
https://basescan.org/tx/0x8639f4b4420d47d68f27dc27967ff62ec913106e5b9ce99011de99b8d91813cd
https://basescan.org/tx/0xb5895314777776da645529df83cd0d0883ed456e2c81e27c97eb5cf45a59c36b
https://basescan.org/tx/0xfa26f3917519444c7d3d9ca05fc70b289d44958cb55801b9221d7b492f41c76d
An Escalating Security Issue on Coinbase
ZachXBT has noted that these types of scams are increasingly prevalent and sophisticated. He estimates that more than $150 million is lost by Coinbase users each year, often due to breaches in data security, ineffective fraud prevention measures, and cunning social engineering tactics. He warns that the actual total could be much higher, as his estimates only consider cases he validated and substantiated by evidence.
ZachXBT has mentioned that a comprehensive and detailed report on the extent of fraud impacting the exchange users is in the works. This increasingly alarming situation raises critical questions about the overall effectiveness of Coinbase’s security measures and whether users are it adequately safeguard users against such high-level scams.
In light of these troubling developments, security practitioners warn users to remain vigilant, activate additional security features such as two-factor authentication, and exercise extreme caution when sharing sensitive account information with others. Being proactive in cybersecurity practices is essential in this rapidly evolving landscape of digital assets.
