Renowned on-chain detective ZachXBT has pinpointed the identity of a scammer who allegedly siphoned over $2 million from Coinbase (COIN) users over the past year. By cross-referencing Telegram screenshots and wallet transactions, ZachXBT traced the funds to a Canadian individual who specialized in “social engineering”. The suspect allegedly posed as Coinbase help desk staff to dupe victims into handing over sensitive data or transferring funds to fraudulent “security” addresses.
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The Suspect’s Downfall Was His Own Reckless Vanity
Despite the technical nature of the thefts, the suspect’s downfall was his own reckless vanity. ZachXBT shared numerous examples of the scammer “flaunting his lifestyle” through selfies and stories with little regard for operational security. The stolen millions were reportedly “blown” on high-priced Telegram usernames, casino gambling, and even “simping for eGirls”. In one leaked screen recording, the suspect accidentally exposed his own email and Telegram account linked to a personal phone number while on a call with a victim.
Coinbase Confronts a Growing Social Engineering Crisis
This $2 million theft is part of a much larger wave of attacks hitting the exchange’s user base. ZachXBT has previously estimated that social engineering scams could be costing Coinbase users up to $300 million annually. This specific case follows a major May 2025 disclosure where Coinbase revealed that rogue agents at a BPO in India were bribed to leak data on nearly 70,000 users, providing scammers with the “insider info” needed to make their fake support calls look legitimate.
How To Spot The Fake Support Scam
According to official Coinbase guidelines and ZachXBT’s findings, users must remain hyper-vigilant as scammers become more organized.
- The Red Flag: No legitimate Coinbase employee will ever ask for your seed phrase, 2FA codes, or for you to “move funds to a secure wallet”.
- The Contact Rule: Coinbase will never call you directly for troubleshooting. If you receive a call, hang up and contact support through the official app only.
- The Platform Rule: Scammers frequently move the conversation to Telegram or WhatsApp to avoid detection; Coinbase has no official presence on these platforms for support.
Key Takeaway
The bottom line is that even the most “sophisticated” scams are often undone by the ego of the criminal. While this suspect successfully social-engineered $2 million from innocent users, his desire for social status on Telegram and Discord provided the breadcrumbs needed to find him. For investors, this case serves as a brutal reminder: your exchange will never call you to move your money. If someone asks you to “secure” your funds by transferring them, they are the ones you are securing them from.
Is Coinbase Stock a Good Buy Now?
According to TipRanks data, the consensus is a Moderate Buy. This is based on 26 analyst ratings, which include 16 Buys, nine Holds, and one Sell over the past three months.
Analysts assign an average 12-month COIN price target of $379.32, representing a 52.3% upside from the latest price.
