Crypto Scams: Beware of Gemini and Coinbase

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:

"This explains Coinbase's phishing emails and fake calls today."

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:

"Coinbase didn't detect it; I was the one who sent them the information."

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.

"Kraken was also recently hit. Maybe new scheme from hackers to infiltrate customer service employees and steal data."

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:

"Do not follow these instructions. Please retweet to protect those who may have been doxxed and received this email."

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:

"We have recently learned that some Gemini customers are receiving scam emails asking them to transfer their cryptocurrencies to external wallets. We would like to remind you that Gemini will never request users to send crypto to external wallets."

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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