Crypto Users Targeted in New Sophisticated Wallet Scam

A surge in phishing emails is hitting crypto users, with scammers posing as Coinbase and Gemini to steal funds.

These fraudulent messages instruct recipients to create self-custodial wallets using pre-generated recovery phrases—allowing attackers to seize control once assets are deposited.

Some victims have shared screenshots of emails allegedly from Coinbase, warning them of a class-action lawsuit and urging them to switch to a new wallet before an April 1 deadline. The email provides a real download link for Coinbase Wallet but tricks users into using a compromised recovery phrase. Gemini users have reported nearly identical scams, with emails falsely citing a court ruling as the reason for the wallet migration.

Both exchanges have denied any connection to these emails. Coinbase has reminded users it never provides recovery phrases, while Gemini has yet to issue a formal statement.

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The phishing campaign follows the SEC’s recent decision to drop lawsuits against both platforms, a fact scammers are exploiting to make their messages seem legitimate. Meanwhile, blockchain security firm CertiK has warned that phishing remains the biggest cybersecurity threat in crypto, accounting for over $1 billion in losses across nearly 300 incidents last year.

Beyond email scams, hackers are also targeting crypto executives directly. Reports indicate that at least three company founders recently thwarted attempts by North Korean hackers posing as potential partners. The attackers invited them to Zoom meetings, then sent fake links disguised as audio fixes, which were actually malware-laden traps.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.