A new scam alert is making the rounds, tricking people into giving away their funds. If you’ve received an email telling you to move your assets from Coinbase or Gemini to a self-custody wallet, think twice before taking action.
How the Scam Works
Fake emails posing as Coinbase and Gemini instruct users to create a new wallet using the provided recovery phrase. This is dangerous as whoever controls the recovery phrase controls the wallet. Scammers can drain everything once a user sets up the wallet and transfers funds. The email even claims that Coinbase is now a registered broker and can no longer hold assets, which is untrue.
Why This Matters
Scam attempts like this are nothing new, but they’re getting more sophisticated. Blockchain security firm CertiK reports that phishing attacks cost crypto users over $1 billion in 2024 alone.
How to Stay Safe from Crypto Scams
- Never use a recovery phrase given to you by someone else. - Check every email communication with Coinbase or Gemini directly by their website instead of clicking on email links. - Be cautious of urgent deadlines—Scammers pressure people into acting fast. - If something feels off, don’t take action—Always double-check.
This scam alert shows that experienced crypto users are still susceptible to this scam. If you receive fake emails from Coinbase or Gemini, report them quickly. Remember that receiving a recovery phrase from anyone other than you represents a danger.
