A blockchain researcher has alerted the community to a social engineering scam targeting Coinbase users. The scam already led to the theft of more than 1,400 Ethereum valued at approximately $4 million on February 16. Coinbase CEO Brian Armstrong highlighted that the company’s goal for 2024 is to improve cryptocurrency payments infrastructure.
Coinbase’s earnings performance might have sent the cryptocurrency community to the moon, but reports suggest a social engineering scam is targeting the exchange’s users.
Blockchain researcher ZachXBT uncovered this tactic, highlighting cases where victims lost significant sums due to fraud.
Coinbase Reset Scam
The scheme, known as the Coinbase reset scam, involves cryptocurrency scammers collecting personal information from users to trick them into resetting their Coinbase login credentials.
Shockingly, these scammers deprived one victim of over 1,400 ETH, valued at around $4 million. ZachXBT offered an explanation on how the scam works, as well as some advice:
“Scammers have to social engineer [their victims] to get them to reset the login so they can gain access. It is good to add a security key like 2FA, not reuse emails or passwords, etc.”
Community members speculated about possible insider involvement. However, debates persist over whether the attackers are posing as cryptocurrency exchange staff. Meanwhile, in a strange twist, one scammer is alleged to have swindled another, highlighting the complex dynamics of these illicit activities.
Coinbase has not yet responded to any media outlet request for comment on the issue.
Coinbase Reveals its 2024 Goal
Amid these security concerns, Coinbase CEO Brian Armstrong outlined the company’s strategic focus for this year to improve its crypto payments infrastructure and expand internationally.
The firm would delve further into derivatives trading to boost revenue and would also work on developing its Coinbase Wallet into an on-chain super app. Armstrong explained the following:
“We will continue to push for regulatory clarity for cryptocurrencies through the courts, standwithcrypto.org, SuperPac contributions, and advancing legislation in DC.”
Regarding the regulatory landscape and Coinbase’s involvement, Armstrong said: “In the United States, there are even two bills going through Congress now with strong bipartisan support… Coinbase, along with other players in the crypto space, contributed to an $85 million Super PAC designed to elect pro-crypto candidates in the upcoming US elections.”
This revelation came after the company posted impressive revenue in the fourth quarter, blowing away analysts’ predictions. The company reported a 45% increase in net income to $905 million and net income of $273 million in the quarter. Last year, the company’s total revenue was $3.1 billion.
Armstrong highlighted the positive impact of traditional financial institutions’ growing interest in cryptocurrencies on the company. Since the launch of the ETFs, the firm has seen a steady increase in net inflows into its retail and institutional products. It has been entrusted with asset custody services for almost 90%, from $37 billion of Bitcoin ETF assets:
“We are in a strong financial position, our long-term focus on compliance has proven adequate in the face of competition, and we are well positioned to help accelerate the adoption of cryptocurrencies, updating the global financial system.”
Optimism around the new approved Bitcoin ETFs played a significant role in increasing the appeal of cryptocurrencies.
“Bitcoin ETFs are breaking records. And when gold launched in November 2004, it took a year to reach $3 billion. These ETFs did it in a few weeks. And so this is really an incredible start,” Armstrong pointed out.
By Leonardo Perez
