Blockchain Analyst Reports $46 Million in Suspected Scams Targeting Coinbase Users

A recent investigation by blockchain analyst ZachXBT has uncovered over $46 million in suspected scams targeting Coinbase users during March. These scams include a significant Bitcoin theft amounting to $34.9 million, highlighting the growing risks associated with cryptocurrency investments and transactions.

Details of the Stolen Funds

According to ZachXBT, the largest scam involved a theft of 400.099 BTC, valued at approximately $34.9 million. Additional thefts were reported throughout March, including:

  • March 26: 60.164 BTC
  • March 25: 46.147 BTC
  • March 16: 20.028 BTC

The stolen assets were reportedly moved across blockchain networks using protocols like Thorchain and Chainflip before being converted into Ethereum (ETH) and DAI (DAI).

Criticism of Coinbase’s Compliance Measures

ZachXBT has criticized Coinbase for failing to flag theft-related addresses in its compliance tools, potentially allowing scammers to continue their activities unchecked. In a statement shared on Telegram, the analyst noted:

“Coinbase has not flagged any of the theft addresses from these victims in compliance tools.”

This lack of action raises concerns about the effectiveness of compliance measures in protecting users from social engineering scams.

Recurring Issues with Social Engineering Scams

The analyst also referenced a previous investigation into similar scams targeting Coinbase users, during which $65 million was reportedly stolen between December 2024 and January 2025. He emphasized that social engineering scams are becoming a persistent issue, with estimated losses reaching $300 million per year.

Tips to Protect Yourself From Cryptocurrency Scams

With scams on the rise, it’s crucial for investors and users to take proactive measures to safeguard their assets. Consider the following tips:

  • Enable multi-factor authentication (MFA): Adding an extra layer of security to your accounts can help prevent unauthorized access.
  • Verify transaction details: Double-check wallet addresses and amounts before completing any transaction.
  • Avoid sharing sensitive information: Never disclose private keys, passwords, or seed phrases to anyone.
  • Use trusted platforms and tools: Opt for exchanges and wallets with robust security protocols and positive user reviews.

By staying vigilant and informed, cryptocurrency users can minimize their exposure to scams and protect their investments.

Understanding the Risks in Cryptocurrency Transactions

As the cryptocurrency market continues to grow, so does the sophistication of scams targeting unsuspecting users. Platforms like Coinbase must strengthen their compliance tools and user education efforts to combat these threats. At the same time, individual users should remain cautious and adopt best practices to secure their assets and transactions.

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