A Coinbase user may have been defrauded of an incredible $34.9 million (400.099 BTC) yesterday, March 28th, which raises more concerns about the platform’s security.
Over $46 million has been stolen this month, including this incident and several other Coinbase users thefts that have been reported in the last two weeks.
How Did The Scam Take Place?
The stolen money involved in this robbery was transferred from Bitcoin to Ethereum through crypto laundering services like Thorchain and Chainflip and subsequently exchanged for the stablecoin DAI
Coinbase has not yet flagged any of the addresses linked to these stolen assets in its compliance tools, despite these significant losses. Many users are worried about how well Coinbase’s security and monitoring measures are working as a result of this inaction.
The increasing number of crypto thefts serves as a reminder of the significance of safe procedures and attentiveness in the crypto industry.
Also Read: Coinbase Validators Control 11.42% of Total Staked ETH with Impressive Uptime
Why is Coinbase A Target For Large Number of Scams
Coinbase, one of the biggest and most well-known cryptocurrency exchanges worldwide, has been a major target for a number of scams.
Given that it has millions of active users and a sizable number of assets under control, it is no wonder that hostile actors and cybercriminals want to take advantage of its user base.
Whether through phishing attempts, account takeovers, or social engineering techniques, fraudsters find the exchange’s high liquidity and user-friendliness to be attractive.
Furthermore, because of its extensive usage and adherence to legal regulations, Coinbase has become a desirable target for hackers attempting to take advantage of holes in its security system or user accounts.
Additionally, it can be difficult to spot fraudulent activity quickly because of the platform’s high transaction volume, which gives scammers windows of opportunity.
The magnitude of Coinbase’s operations makes it a constant target for fresh and changing scams, even with security measures in place. This has caused users to become increasingly concerned.
Crypto Scams Take Center Stage in Industry
The growing acceptance and appeal of cryptocurrencies, which draw both unskilled and malevolent players, is contributing to an increase in cryptocurrency scams on exchanges.
Scammers want to take advantage of these exchanges’ vulnerabilities, including phishing, account takeovers, and fraudulent transactions, especially big ones with millions of users.
Furthermore, the irreversible nature of crypto transactions and their secrecy make it challenging to track down and retrieve stolen money.
The problem is made worse by weak security measures or slow exchange answers, which leaves consumers more vulnerable to scams. Scam chances are increasing as more individuals trade cryptocurrency.
Also Read: Coinbase Boosts Base Privacy With Iron Fish Team Acquisition, Amid Record Crypto Hacks In 2025