Blockchain researchers ZachXBT and tanuki42 from zeroShadow have raised concerns about security gaps in Coinbase
$4.62B
, claiming these weaknesses have made it easier for scammers to steal from users.
According to their findings, users lost over $65 million in December 2024 and January 2025. However, they believe the actual losses are even higher since their estimates are based only on reports sent directly to them.
In a post on X, ZachXBT explained, “Our number is likely much lower than the actual amount stolen as our data was limited to my DMs and thefts we discovered on-chain, which does not account for Coinbase support tickets and police reports we do not have access to”.
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Their research suggests that scams on the platform resulted in over $300 million in stolen funds over the past year. Many of these scams use social engineering tactics, which trick users into revealing sensitive information.
One security issue they highlighted involves Coinbase’s stance on virtual private networks (VPNs). The platform advises users not to use VPNs to avoid being flagged by its security system. However, scammers reportedly block VPN access to their phishing websites, making it harder for users to recognize fraudulent sites.
ZachXBT argued that several issues contribute to the rise in scams, including Coinbase’s failure to track fraudulent addresses effectively, poor customer support, and the lack of assistance for users outside US time zones.
Meanwhile, according to SlowMist’s chief information security officer (CISO), over 7 million email addresses from OpenSea’s 2022 data breach have been made public. How does this impact affected users? Read the full story.
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