ZachXBT Reports Coinbase User Lost $34.9 Million in a Sophisticated Scam

ZachXBT, a well-known blockchain investigator, recently posted on Telegram and reported that a Coinbase user had $34.9 million stolen from their account

A Coinbase user had $34.9 million stolen from their account in a very sophisticated scam, reports ZachXBT.

The post on Telegram reports that this incident is part of a larger trend, with over $46 million being stolen from Coinbase users this month alone.

How Was The Hack Executed?

The stolen 400.099 BTC were first converted to Ethereum using Thorchain and Chainflip. This Ethereum was then converted into a stablecoin known as the DAI.

Afterward, the stolen DAI were deposited into two addresses, one on Optimism and the other on Mantle.

However, to the surprise of many, there has not been a single concern raised by Coinbase, nor has the exchange flagged any of the addresses in their compliance tools.

This negligence from Coinbase is concerning and raises questions about how the exchange handles these kinds of scams and shows how important user protection is to the exchange.

Earlier this year, ZachXBT had reported that Coinbase users may be losing up to $300 million annually due to social engineering attacks.

According to ZachXBT’s recent analysis, he highlighted the fact that the total losses for user have been significantly underreported to law enforcement agencies or there is a possibility that these reports are not being captured by the internal systems of Coinbase.

Previous Hacks on Coinbase

In the past, there have been significant incidents of scams and hacks where Coinbase users have been involved.

In 2021, around 6,000 customers lost funds due to attackers exploiting vulnerabilities in the SMS-based multi-factor authentication system.

Moreover, there also has been a phishing attack which led to $37 million being stolen from the users who were tricked into providing their credentials on a fake Coinbase website. There also has been an impersonation scam that have targeted Coinbase users the most.

Recently, a crypto scammer tricked a Coinbase user into transferring 326 BTC, valued at approximately $34.9 million at the time of the scam in May 2023. The scammer reportedly posed as a well-known crypto influencer to deceive the victim.

Earlier this month, another report from the investigator revealed that a crypto scammer tricked a Coinbase user into transferring 326 BTC, valued at approximately $34.9 million at the time of the scam in May 2023. The scammer reportedly used the identity of a prominent crypto influencer to deceive the victim.

According to the analysis by blockchain investigator ZachXBT, the stolen BTC were first converted to Ethereum using Thorchain and Chainflip. Afterward, the Ethereum was converted into a stablecoin known as DAI.

The stolen DAI were deposited into two addresses, one on Optimism and the other on Mantle. However, to the surprise of many, Coinbase has yet to express any concerns or flag any of the addresses in their compliance tools.

This lack of action from Coinbase is concerning and raises questions about how the exchange handles these kinds of scams and shows how important user protection is to the exchange.

Earlier this year, ZachXBT had reported that Coinbase users may be losing up to $300 million annually due to social engineering attacks.

According to ZachXBT’s recent analysis, he highlighted the fact that the total losses for user have been significantly underreported to law enforcement agencies or there is a possibility that these reports are not being captured by the internal systems of Coinbase.

What Are The Internal Measures Being Taken By Coinbase?

In 2021, a significant number of Coinbase customers fell victim to a large-scale scam. Reports from the incident suggest that around 6,000 customers lost their cryptocurrency holdings due to attackers exploiting vulnerabilities in the SMS-based multi-factor authentication system used by the exchange.

Later that year, another phishing attack targeted Coinbase users, resulting in the theft of an estimated $37 million. Users were tricked into providing their credentials on a fake Coinbase website, which allowed the attackers to gain access to their accounts.

Earlier this year, another scam targeted Coinbase users, with an imposter attempting to siphon funds from a user in a very large-scale crypto scam. An incompetent scammer nearly tricked a Coinbase user into transferring 326 BTC, valued at approximately $34.9 million at the time of the scam in May 2023.

The post by blockchain investigator ZachXBT claims that the scammer attempted to impersonate a prominent crypto influencer in an effort to deceive the Coinbase user.

According to the analysis by the investigator, the stolen BTC were first converted to Ethereum using Thorchain and Chainflip. Afterward, the Ethereum was converted into a stablecoin known as DAI.

The stolen DAI were deposited into two addresses, one on Optimism and the latter on Mantle. However, to the surprise of many, Coinbase has yet to express any concerns or flag any of the addresses in their compliance tools.

This lack of action from Coinbase is concerning and raises questions about how the exchange handles these