Coinbase Users Lose $45M in Sophisticated Week-Long Phishing Spree – ZachXBT Exposes Attack

Crypto’s ’trustless’ system fails spectacularly as attackers drain wallets while exchanges scramble to play catch-up.

How it happened: A mix of social engineering and smart contract exploits bypassed even Coinbase’s security—proving once again that your keys aren’t always your coins when centralized platforms get involved.

The aftermath: Victims now face the classic crypto dilemma—wait for a miracle reimbursement or write it off as another ’educational expense’ in this unregulated Wild West.

“Over the past few months I have reported on nine figures stolen from Coinbase users via similar social engineering scams,” ZachXBT wrote. In February, the blockchain investigator shared a detailed thread outlining the losses suffered by Coinbase users and the sophisticated nature of the attacks targeting them.

ZachXBT asserted that Coinbase’s aggressive risk models and its inability to effectively prevent such attacks have contributed to user losses exceeding $300 million annually.

Additionally, the blockchain analyst noted a key observation that he shared on his Telegram channel. “Interestingly no other major exchange has the same problem,” ZachXBT wrote. 

Many in the online community backed ZachXBT’s comments, sharing their own thoughts and experiences on X.

A content creator known as “Nathan” supported the blockchain investigator’s observation, noting that other exchanges tend to handle user concerns more effectively and respond with greater urgency.

Coinbase, you need to do better to protect your customers from scams.

9 figures stolen via social engineering scams in just a few months is a RED FLAG!

Almost all other major exchanges do not face similar issues, and they are very good at taking care of and responding quickly… https://t.co/casNbSyODe pic.twitter.com/KeElZIGVgg

“I agree that a lot of the fault lies with the customers, but with so many thefts happening over just a few months and no reports or responses from Coinbase, I don’t understand what they are doing,” Nathan wrote in a post on X. 

In April, the blockchain analyst publicly criticized Coinbase, citing personal account access issues and alleging the platform suffered a customer data leak that had not been disclosed. He claimed the breach contributed to thefts and urged users to reconsider using the exchange due to what he described as persistent platform shortcomings.

The recent wave of criticism adds to growing scrutiny over how major cryptocurrency platforms manage user protection, transparency, and response times in the face of evolving threats. As concerns mount, industry observers continue to call for stronger safeguards and greater accountability across the crypto ecosystem.

Read More

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the shiba inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.