Coinbase's revenue performance may have thrown the crypto community into turmoil, but reports suggest that a social engineering scam is targeting the exchange's users.
Blockchain researcher ZachXBT uncovered this scheme and highlighted cases where victims lost large sums of money due to the scam.
Coinbase reset scam
The scheme, known as the Coinbase reset scam, involves cryptocurrency scammers collecting personal information from users and tricking them into resetting their Coinbase login credentials. Shockingly, these scammers robbed the victim of her over 1,400 ETH, worth an estimated $4 million.
“Scammers have to use social engineering” [their victims] Reset your login to gain access. I recommend things like adding your security key as his 2FA and not reusing emails or passwords. ” ZachXBT advised.
Community members speculated about possible insider involvement. but, discussion Questions remain as to whether the attackers are impersonating crypto exchange staff. Meanwhile, in a bizarre twist, one scammer has reportedly defrauded another, highlighting the complex power dynamics in these illegal activities.
Read more: Crypto social media scams: How to stay safe
It is noteworthy that Coinbase has not yet responded to BeInCrypto's request for comment on this issue.
Coinbase reveals 2024 focus
Amid these security concerns, Coinbase CEO Brian Armstrong outlined the company's strategic focus this year to strengthen its crypto payments infrastructure and expand internationally. The company will also delve deeper into derivatives trading to increase revenue and develop Coinbase Wallet into an on-chain super application.
“We will continue to push for clarity in the regulation of cryptocurrencies through the courts, standwithcrypto.org, contributions to SuperPac, and encouraging legislation in Washington, D.C.,” Armstrong continued.
This comes on the heels of the company's impressive fourth-quarter earnings, which saw analysts' predictions miss the mark. The company reported a 45% increase in net revenue for the quarter to $905 million and net income of $273 million. The company's total revenue last year was $3.1 billion.
Read more: Coinbase Review 2024: Best crypto exchange for beginners?
Armstrong emphasized that the growing interest in cryptocurrencies by traditional financial institutions is having a positive impact on the company. Since the launch of the ETF, the firm has observed consistent growth in net inflows for retail and institutional products. It is entrusted with asset custody services for nearly 90% of the approximately $37 billion Bitcoin ETF assets.
“We are in a strong financial position and our long-term focus on compliance has proven to be correct relative to our competitors, allowing us to accelerate the adoption of cryptocurrencies and update the global financial system. Armstrong concluded.
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