Coinbase Users Lost $46M to Crypto Scams in March: ZachXBT

Crypto Sleuth and analyst ZachXBT recently uncovered a rise in crypto scams targeting Coinbase users in March. Victims lost over $46 million to these sophisticated schemes. This includes a single theft of 400.099 Bitcoin (BTC) worth about $34.9 million, one of the biggest crypto scams seen this year.

ZachXBT Revealed How the Funds Were Stolen

The blockchain analyst shared his findings on Telegram, explaining how the scammer carried out the Bitcoin heists over several days. The attackers moved the stolen funds using platforms such as Thorchain and Chainflip. 

These platforms let people move crypto between different blockchains without a central exchange, making it harder to track stolen digital assets.

Once the funds were moved, the bad actors converted them into Ethereum (ETH) and DAI (DAI), making tracing even more difficult. This process helped the criminals hide their tracks and avoid getting caught.

Coinbase Criticized for Lack of Action

ZachXBT did not just expose the scams; he also called out Coinbase for failing to act. According to him, Coinbase has not flagged any of the stolen fund addresses in its compliance system, allowing scammers to continue operating without restrictions.  

Meanwhile, this crypto theft is not an isolated event. The analyst pointed out that between December 2024 and January 2025, Coinbase users lost $65 million to similar scams. 

ZachXBT revealed that the exchange faces a growing social engineering scam problem, with estimated yearly losses reaching $300 million. Social engineering scams often involve phishing, fake customer support agents, and fraudulent investment schemes to deceive victims. 

Bad actors usually use these tactics to trick users into revealing their private keys or transferring funds to malicious addresses. The analyst warned that if Coinbase does not improve its security measures, more users could fall victim to these scams. 

Users are urged to stay vigilant and double-check transactions to avoid falling prey to these schemes.

A Growing Problem in the Crypto Industry

Unfortunately, these crypto scams are not limited to a single exchange but are happening across the industry. Hackers are using more advanced tricks to get past security systems, making it harder to stop them.

In January, a phishing scam drained millions from high-profile Ethereum wallets. Shortly after, a major hack targeting a decentralized exchange led to even more losses. Criminals also use crypto mixing services and cross-chain bridges to move stolen money without being tracked. 

The rise of decentralized finance (DeFi) platforms and cross-chain tools has made it easier for scammers to move and launder funds.

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