
Crypto Scams: Beware of Gemini and Coinbase
Rise of crypto scams: fake emails about failures and unauthorised access affect Gemini and Coinbase users.
Rise of crypto scams: fake emails about failures and unauthorised access affect Gemini and Coinbase users.
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The rapid expansion of the cryptocurrency market has led to an increase in fraudulent activity, with scammers actively targeting new investors.
Recent fraudulent activity includes fake emails regarding the alleged bankruptcy of Gemini Exchange and Coinbase's confirmation that a staff member had unauthorised access to customer data.
Access to User Data: Coinbase Confirms
Coinbase has verified that a customer service employee had unauthorised access to user account information. The security breach at Coinbase has raised concerns about possible scams targeting its customers.
The Block's co-founder, Mike Dudas, shared the official email confirming the incident, stating:
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Coinbase users are facing an unauthorised access problem at a time of increasing phishing attacks involving fraudulent emails and phone calls. Recent incidents demonstrate the expansion of cryptocurrency-related fraud.
According to ZachXBT, between 2024 and 2025 Coinbase lost over $65 million to social engineering-based scams. On X (formerly Twitter), Zach stated:
In addition, crypto analyst Cobbie highlighted that Kraken is also facing a similar problem. According to a post of his, a new attack is emerging in which hackers are posing as customer service members to steal data.
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Bankruptcy of Gemini: The Platform Responds
Another scam involved multiple users receiving an email claiming that Gemini had declared bankruptcy. The email contained a seed phrase and instructions to transfer the tokens to Exodus Wallet.
These emails directed users to withdraw their funds to a wallet, ostensibly to protect them, but in reality it was an attempt to trick victims into transferring cryptocurrencies to wallets controlled by hackers.
Jason Williams, a Fox Business contributor, shared a tweet urging users to protect themselves:
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Unverified emails falsely report a $1.2 billion loss on Gemini Exchange, deceiving unsuspecting investors. Fraudsters use misleading messages to exploit the fear of financial losses and convince people to send money to fraudulent addresses. The lingering trauma of the FTX collapse makes investors even more vulnerable.
Faced with this confusion, Gemini issued an official statement:
How to Avoid Crypto Scams
ZachXBT shared some recommendations to avoid scams in the crypto sector, stressing the importance of careful research before interacting with new DeFi protocols. It also advises to be wary of projects with a very small follower base, as they could hide potential fraud.
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