Coinbase Faces Scrutiny Amid $1.7 Million Scam Allegation
![Coinbase Faces Scrutiny Amid $1.7 Million Scam Allegation](https://coinspress.com/wp-content/uploads/2023/01/scam-915x600.webp)
Coinbase, a leading crypto exchange, is under fire following allegations of a $1.7 million scam.
An investor claimed to have fallen victim to a fraudulent scheme where an imposter posing as a Coinbase employee contacted them.
The scammer, masquerading as part of Coinbase’s security team, sent convincing emails and manipulated the victim into believing they were in direct contact with official representatives.
The fraudster alleged that transactions were actively draining the victim’s wallet, falsely claiming it was directly linked to blockchain activity. The victim received a follow-up email, seemingly from Coinbase, detailing a transaction that had been processed.
READ MORE: Metaplanet Increases Bitcoin Holdings with $1.2 Million Purchase
In a bid to halt further transactions, the victim was instructed to enter their seed phrase, a move they hesitantly complied with by entering only a portion of the phrase, hoping to salvage their funds. However, despite precautions, the victim’s wallet was emptied of $1.7 million shortly thereafter.
Alex Miller, CEO of Hiro Systems, warned that such websites can capture data even without submission, highlighting the risk posed by partial disclosures like the victim’s seed phrase.
Miller, who recently faced a similar scam attempt impersonating Coinbase, advised users to refresh their API keys if utilizing platforms like CoinTracker for added security.