Users Targeted by Sophisticated Scam Emails Impersonating Coinbase and Gemini
Users are reporting a sudden increase in phishing mail in Impersonating Coinbase and Gemini. There is no report of anyone falling for them
Users of major exchanges Coinbase and Gemini are reportedly facing a surge in sophisticated phishing attacks as scammers impersonate the exchanges.
The attacks come in the form of fraudulent emails aimed at tricking recipients into transferring personal funds to wallets controlled by the attackers, using fear tactics and fabricated legal threats.
How the Scam Works
The scam begins with an urgent email claiming to be from Coinbase or Gemini. Recipients see a message stating they must move their crypto assets to a self-custody wallet by April 1 due to an alleged class-action lawsuit.
“Coinbase will operate as a registered broker, allowing purchases, but all assets must move to Coinbase Wallet,” the email states, falsely citing a court order tied to unregistered securities sales, a lawsuit the SEC has already dropped.
The email also includes clear instructions for downloading the original Coinbase Wallet but adds an extra step of producing a pre-generated recovery phrase provided by the scammers.
Unsurprisingly, if users use these phrases, the attackers gain full access to their wallet. Once victims transfer funds, the scammers can then quickly drain the wallets.
Coinbase and Gemini Issue Warnings
Both exchanges responded to the complaints. Coinbase confirmed they were aware of the scam in an X post on March 14, emphasizing, “We will never send you a recovery phrase, and you should never enter a recovery phrase given to you by someone else.”
Similarly, Gemini also warned users to avoid such scams. Gemini users reported identical scam tactics, with fake emails referencing an already resolved SEC lawsuit over its Earn program.
The exchanges urged clients to verify communication authenticity directly through official platforms and avoid clicking suspicious links.
Phishing Attacks Still Remain a Threat
Phishing attacks still remains one of the most potent risks bedeviling the crypto industry. The attacks have gained over $1 billion from victims in 2024 alone, with 296 incidents recorded, Blockchain firm CertiK reports. Fraudsters increasingly mimic trusted brands, craft convincing emails, and exploit events to manipulate users.
