ZachXBT Uncovers $2M Coinbase Impersonation Scam Using Onchain Clues

ZachXBT is the on-chain expert who is often talked about. He uncovered a complex scam in which someone was pretending to be from Coinbase, in an attempt to deceive regular people into giving up their belongings. It’s quite astonishing how this scam worked.

How ZachXBT’s Sleuthing Led to Exposure

While investigating the scam, the perpetrator ended up losing around two million dollars in stolen cryptocurrency. The exposure unfolded relatively smoothly in the end. However, the way it unfolded feels remarkable.

Source: Medium

Well-known for his meticulous work, they used Telegram group chat screenshots, social media posts and onchain activity to cross-reference and figure out who the scammer was. The scammer’s overconfidence and boasts on social media, and just about everywhere else online, ultimately sealed their fate. 

Also Read: Coinbase Hacker Resurfaces with $42M BTC Transfer and Troll Comment to ZachXBT

Beware of Social Engineering Scams

Social engineering, as highlighted by the FBI, is a massive threat in the crypto space, and the FBI reported over $16 billion in internet crime losses last year. Coinbase and other exchanges warn that no legitimate support will ask for passwords, 2FA codes or will send you to a “safe” address.

Also Read: BitoPro Confirms $11.5M Hack After ZachXBT Flagged Unusual Wallet Activity

Verify Before You Act

Coinbase keeps saying they never ask for passwords or two factor codes, or to move funds to some safe spot. You have got to check any support message yourself, not just go along with it, and kind of disrupt whatever the attacker is trying to do fast.

ZachXBT’s work highlights the importance of being vigilant in crypto. Understanding what scammers do and sticking to good habits helps, but not totally sure everyone does that all the time.

Also Read: Coinbase $400 Million Theft Exposed By ZachXBT