Crypto investors, beware! A sophisticated phishing scam is making the rounds, targeting users of popular exchanges like Coinbase and Gemini with fake emails designed to steal your crypto assets.
Fake Emails Spoof Coinbase & Gemini Wallets
A new wave of spoof emails is tricking2 unsuspecting users into downloading legitimate wallet apps—like Coinbase Wallet—but with a dangerous twist. These emails contain pre-generated recovery phrases, giving hackers full access to any wallet set up using those phrases.
Victims are being urged to “transition to self-custodial wallets”, under the false pretense of new security protocols or court mandates. But in reality, these emails are cleverly crafted traps by scammers to drain users’ funds instantly.
❗ Example of a fake email message:
“Coinbase will now operate as a registered broker. All customers must move funds to Coinbase Wallet.”
This claim is entirely false—Coinbase has not issued any such directive, and importantly, the U.S. SEC has already dropped its lawsuit against Coinbase, dismissing earlier allegations about broker activities.
Coinbase and Gemini Speak Out
Both Coinbase and Gemini are now issuing warnings to their communities.
In a recent post on X (formerly Twitter), Coinbase stated:
“⚠️ We will never send you a recovery phrase. Never use or trust a phrase provided by anyone else.”
Meanwhile, Gemini users are receiving similar phishing messages, falsely citing court orders that supposedly require them to create new wallets—again, using scam-linked recovery phrases.
Though Gemini hasn’t officially commented yet, users are strongly advised to remain vigilant.
Crypto Phishing Scams on the Rise: $1 Billion Lost in 2024
According to blockchain security firm CertiK, phishing scams are becoming one of the biggest threats in crypto. In 2024 alone, over $1 billion has been lost across 296 phishing incidents—and the number is still climbing.
One particularly alarming case involved North Korean hackers impersonating potential business partners. They scheduled fake Zoom calls with crypto project founders and sent malicious links disguised as call invitations—another chilling reminder of how sophisticated these scams have become.
How to Protect Yourself from Crypto Scams
Stay one step ahead of the scammers by following these essential security tips:
- Never use a recovery phrase given by anyone else.
- Enable Two-Factor Authentication (2FA) on all crypto accounts.
- Verify suspicious emails directly with official support channels.
- Avoid urgent emails that pressure you into taking immediate action.
- Keep your recovery phrase offline and secure.
Final Thoughts: Stay Vigilant, Stay Safe
As the crypto space continues to evolve, so do the scams. Whether you’re a beginner or a seasoned investor, maintaining strict wallet security is critical.
👉 Always double-check messages, never share your seed phrase, and report suspicious activity immediately.
Your digital assets are valuable—don’t let scammers steal your hard-earned crypto.
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