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Crypto Heist Revealed: Scammers Pull Five Figures Weekly Posing as Coinbase

Key Takeaways

  • Scammers impersonating Coinbase support are earning tens of thousands weekly by targeting high-profile crypto CEOs;
  • The fraudsters use techniques like auto-doxxing and email spoofing;
  • Stolen crypto is laundered through Tornado Cash and Monero, avoiding detection.
Crypto Heist Revealed: Scammers Pull Five Figures Weekly Posing as Coinbase

Crypto scammers are reportedly raking in tens of thousands of dollars per week by posing as Coinbase $3.98B support staff.

Nick Neuman, CEO of Casa, a provider of Bitcoin BTC $101,661.24 self-custody solutions, recently encountered one of these scammers. Rather than falling for the trick, he confronted the caller, extracting insights into the scammer's methods and earnings.

According to the fraudster, their operation generates no less than five figures weekly, with one particular day yielding $35,000.

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Neuman shared the interaction in a video on X, revealing the scam’s strategy. The scammer began by falsely claiming a canceled password change request and sending a notification containing a harmful link.

When questioned about their targets, the scammer candidly disclosed they primarily target high-income individuals such as CEOs, CFOs, and software engineers. "You would be surprised, man. It's people like you, you’re a Chief Executive Officer at Casa..." the scammer explained.

The scammer further revealed that their data often comes from crypto companies, naming Unchained Capital as one such source.

They admitted to leveraging a tool called an “auto-doxxer” to gather more detailed information about their victims. Additionally, they spoof emails to appear as though they originate directly from Coinbase.

Unlike traditional phishing scams aimed at stealing passwords, the ultimate goal is to manipulate victims into transferring funds directly into wallets controlled by the scammers. To obscure the stolen assets, the criminals utilize Tornado Cash for laundering and Monero XMR $214.84 to erase the funds' digital trail.

To convert stolen crypto into fiat currency, the scammers avoid exchanges requiring identity verification. Instead, they rely on hardware wallets like Ledger, Trezor, and Trust Wallet to liquidate their assets.

The scammer revealed that it was easy to access company databases. They also mocked the lack of enforcement by asking:

If you lose $30,000, $40,000 in ETH, BTC, whatever, who are you going to call? The crypto police?

However, this isn’t the only instance of cybercriminals exploiting vulnerabilities for massive payouts. Just recently, a notorious hacking group called "Scattered Spider" was unmasked, with five members charged in a staggering $11 million crypto theft. How did they pull off such a high-stakes heist? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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