Coinbase Users Lose $150 Million: The Scam That Keeps on Giving!

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In a twist that could only be described as a cosmic joke, a Coinbase user has managed to lose a staggering 110 cbBTC, which is approximately $11.5 million. This unfortunate event transpired after our hapless hero fell prey to a social engineering scam on Base, the Ethereum layer-2 network that is, for some reason, backed by the exchange. Who knew that trusting the internet could be so risky? 🤔

On the 31st of January, blockchain sleuth ZachXBT, who apparently has a knack for uncovering the absurdities of the crypto world, revealed this exploit. He linked it to a grander scheme of fraud that seems to be plaguing Coinbase users like a particularly persistent case of intergalactic space lice.

ZachXBT Unveils $150 Million Heist: The Coinbase Chronicles Continue!

According to the ever-watchful ZachXBT, the pilfered cbBTC—Coinbase’s version of wrapped Bitcoin, which sounds like a fancy gift-wrapping service for digital currency—was whisked away faster than you can say “Where did my money go?” The attacker, in a dazzling display of digital acrobatics, swapped, bridged, and shuffled the funds through various platforms, consolidating them with other ill-gotten gains on Ethereum. Recovery? Ha! That’s about as likely as finding a needle in a haystack while blindfolded and riding a unicycle. 🎪

Our intrepid investigator noted that this incident is merely a drop in the ocean of chaos, with numerous Coinbase users experiencing similar financial misadventures. He estimates that scams of this nature have siphoned off at least $150 million from unsuspecting Coinbase customers. That’s a lot of money for a game of digital hide-and-seek!

“Coinbase has a serious fraud problem. I just uncovered many more recent thefts from Coinbase users. The $150 million stolen from Coinbase users in a year is just from thefts I independently confirmed. So it’s more than likely multiples of this number,” ZachXBT stated, probably while shaking his head in disbelief.

Coinbase, in a display of remarkable silence, has yet to comment on this latest escapade. However, scams involving fraudsters impersonating Coinbase support have become as common as bad puns at a comedy club. 🎤

These digital bandits employ phishing emails, spoofed calls, and other devious tactics to trick victims into revealing their private keys or login credentials. Once they gain access, they drain wallets, move funds, and take control of accounts faster than you can say “Oops, I did it again.”

Last December, a Coinbase Commerce vendor lost a jaw-dropping $15.9 million, all while the exchange’s anti-money laundering (AML) system was presumably taking a nap. Prior to that, an imposter managed to steal $6.5 million in October 2024 using a phishing scheme while masquerading as part of Coinbase’s support team. Talk about a costume party gone wrong!

“I receive inbounds every week from Coinbase users falling for targeted social engineering scams which result in millions of dollars of losses each month. Coinbase does not help the victims and no other major exchange has this same issue. The leadership is completely out of touch with actual threats and cites obscure internal policies to abscond itself of any responsibility even when it’s the right thing to do,” ZachXBT lamented on X (formerly Twitter), probably while sipping a cup of existential dread.

These incidents serve as a glaring reminder of the growing security concerns for Coinbase users. As the largest crypto exchange in the US, the company is under increasing pressure to improve fraud detection and protect its customers from the sophisticated cyber threats that seem to be lurking around every digital corner.

If these scams continue unchecked, they could further erode trust in centralized exchanges and highlight the urgent need for improved security protocols. Because, let’s face it, nobody wants to be the next star of a crypto horror story! 👻

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2025-02-01 19:59