Crypto Scam Alert: Beware of Phishing Emails from Coinbase and Gemini

Crypto Scam Alert: Fraudulent Emails Could Steal Your Assets

Crypto Scam Alert– Crypto users have recently reported a significant rise in scam emails impersonating major exchanges like Coinbase and Gemini. These fraudulent emails aim to deceive users into setting up new wallets using pre-generated recovery phrases controlled by scammers.

The scams typically involve emails that appear to be from legitimate platforms like Coinbase, urging users to switch to self-custodial wallets. These emails provide instructions for downloading the authentic Coinbase Wallet, with a deadline to complete the switch by April 1. However, the emails also include pre-generated recovery phrases. If users open a new wallet with these phrases and transfer funds, the assets will be sent directly to the scammer’s wallet.

The fake email also references a class-action lawsuit against Coinbase, alleging the platform sold unregistered securities, which supposedly led to a court decision mandating users to manage their wallets. The email falsely claims that Coinbase will operate as a registered broker and that all assets must move to Coinbase Wallet.

Coinbase and Gemini Respond

Coinbase has confirmed awareness of the scam and warned users in a post on X, stating, “We will never send you a recovery phrase, and you should never enter a recovery phrase given to you by someone else.”

Gemini has also been targeted by similar phishing attacks, with scammers claiming that users need to create new wallets due to a recent court ruling. These fake emails were connected to the lawsuit where the SEC accused Gemini of offering unregistered securities, a case that was dropped by the regulator in late February.

According to CertiK’s Web3 security report, phishing attacks targeting the crypto community remain a major security threat, with scammers successfully stealing $1 billion from users in 296 incidents. Crypto founders have also reported attempts from alleged North Korean hackers trying to steal sensitive information through fake Zoom calls. These incidents highlight the increasing risks that crypto users face.

Crypto users should be cautious and verify any emails or requests to set up wallets or transfer funds, as these could be part of a larger scam. Always ensure you’re using the official websites and applications to manage your assets securely.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.