Coinbase Now Faces Public Attention after ZachXBT, a Crypto Investigator, Broke Out News of a Shocking Social Engineering Scam

Generally, scammers impersonate agents of Coinbase support to trick users into revealing sensitive information like private keys and login information.

Coinbase users have lost a staggering $300 million to social engineering scams in the past year, according to a new investigation by crypto sleuth ZachXBT.

The scams typically involve fraudsters impersonating Coinbase support agents and tricking users into revealing sensitive information like their private keys and login details.

The investigation comes amid increasing scrutiny of Coinbase's security practices, following a string of high-profile hacks and scams targeting the exchange's users.

"Over the past few months I imagine you have seen many Coinbase users complain on X about their accounts suddenly being restricted," ZachXBT said in a Feb. 3 tweet kicking off a thread on the investigation.

"This is the result of aggressive risk models and Coinbase’s failure to stop its users losing $300M+ per year to social engineering scams."

Social engineering scams have long plagued the crypto space, but ZachXBT's probe appears to be the first to uncover the massive scale of the scams targeting Coinbase users.

The fraudsters use a variety of tactics to trick people into handing over their account information, including sending phishing emails, making scam phone calls, and even leaving malicious QR codes in public places.

Many users have fallen victim to these scams despite Coinbase having safety nets in place. The scams highlight how easily users can be tricked if they are not adequately educated about the risks involved.

"Let’s walk through how these Coinbase social engineering scams work," ZachXBT said in another tweet.

"A victim reached out to me last month after losing ~$850K. Graphing out this theft lead to a consolidation address with 25+ other victims tied to ‘coinbase-hold.eth’. Theft address…"

The scams have reportedly affected a large number of Coinbase users, with at least $65 million being stolen in just the two months from December 2024 to January 2025.

This figure does not include any police reports or Coinbase support tickets that ZachXBT was unable to obtain, indicating that the total losses could be even higher.

The scams are also having a wider impact on the exchange, with the high volume of user complaints putting a strain on Coinbase's customer support team.

"Coinbase users are losing large sums of money to social engineering scams & getting their accounts locked when they report it," ZachXBT noted in one tweet.

"Coinbase support is so backed up that users are waiting 2+ months for a response after reporting a scam."

The investigation is likely to put further pressure on Coinbase to improve its security measures and better protect its users from fraud.

The exchange has yet to publicly comment on ZachXBT's findings, but the company has a history of rolling out security updates in response to emerging threats.

With losses of this magnitude, it is clear that Coinbase will need to improvise new defenses to fend off future scams of this kind. Along with increasing user education on spotting social engineering techniques, the platform is likely to focus on bolstering its security.

For now, users can protect themselves by enabling two-factor authentication on their accounts and remaining vigilant for any signs of potential fraud, especially if they receive any unsolicited communications.

ZachXBT's report on the scams serves as a reminder of just how much community involvement is needed in the effort to curb fraudulent activities.

As the cryptocurrency market continues to grow and faces increasing threats, both users and platforms need to be on the lookout to safeguard their finances.

The $300 million loss could only underscore the importance of having good security in place for the cryptocurrency sector.