Crypto Scam Emails Spoofing Coinbase and Gemini to Steal Funds

Key Points

• Crypto Scam Emails Spoofing Coinbase and Gemini to Steal Funds
• Fake emails urge users to move crypto before April 1.
• Scammers provide pre-generated recovery phrases.
• Coinbase and Gemini have been spoofed.
• Users must avoid entering recovery phrases from emails.

Crypto users are being targeted by a new phishing scam that impersonates major exchanges like Coinbase and Gemini. These fraudulent emails claim that users must transfer their assets to a self-custody wallet before April 1 due to a supposed court ruling. However, this is a deceptive ploy to trick users into handing over control of their funds.

Is anyone else getting the fake @coinbase emails and texts? They’re getting increasingly sophisticated.

One is a fake verification text to get you to call a fake support number and the other is an email getting you to set up a real wallet they can drain.

Stay safe out there. pic.twitter.com/8SgjPQeUqk

— Steve 🤙 (@SteveKBark) March 14, 2025

The scam email provides a pre-generated recovery phrase, a crucial security element that grants full access to a wallet. Victims who use these phrases to create a new wallet and transfer their funds unknowingly hand over control to the scammers, allowing them to drain the assets instantly.

Reports on X (formerly Twitter) highlight multiple examples of these phishing emails. The messages claim that Coinbase is transitioning to a new system due to a class-action lawsuit, falsely stating that the exchange must comply with a court order requiring users to move their funds to Coinbase Wallet.

Holy shit. Did anyone else get the “Migrate to Coinbase Wallet” e-mail? It looks very polished though transparently a scam. Be careful out there. @coinbase @CoinbaseWallet @CoinbaseSupport pic.twitter.com/nApchFKxdm

— OminousOkto (@Lucky8Token) March 14, 2025

Coinbase has already responded, warning users:
“We will never send you a recovery phrase, and you should never enter a recovery phrase given to you by someone else.”

The scam is not limited to Coinbase—Gemini has also been spoofed using similar tactics. Emails impersonating Gemini claim that a recent court ruling mandates users to create new wallets. While Gemini has not yet issued an official response, security experts believe this is part of a coordinated phishing attack targeting multiple exchanges.

Reminder: Beware of recovery phrase scams.

We’re aware of new phishing emails going around pretending to be Coinbase and Coinbase Wallet.

We will never send you a recovery phrase, and you should never enter a recovery phrase given to you by someone else. pic.twitter.com/E9Us5jNS4C

— Coinbase Support (@CoinbaseSupport) March 14, 2025

Phishing Scams Continue to Rise in Crypto

This latest attack highlights the growing trend of crypto-related phishing scams. According to blockchain security firm CertiK, phishing scams are the biggest cybersecurity threat in 2024, with users losing over $1 billion across 296 incidents.

Looks like massive phishing scams ongoing. Got two emails targeting @coinbase and @Gemini users.

Everyone be safe! pic.twitter.com/ceP1jqWQ1Z

— Sukesh Tedla (@sukeshtedla) March 14, 2025

Cybercriminals continue to evolve their tactics. Beyond email scams, crypto users and high-profile figures in the industry are also being targeted through fake Zoom calls. Recently, at least three crypto founders reported narrowly escaping a hacking attempt by alleged North Korean cybercriminals. The scammers posed as potential partners and invited them to a Zoom meeting. Once the call started, they sent a fake link, claiming there were technical issues. If clicked, the link would install malware, allowing the hackers to steal sensitive data.

The rise in phishing scams comes at a time when the crypto market is experiencing major developments. Recent reports suggest that an XRP proposal could potentially unlock $1.5 trillion in liquidity for the U.S. market, boosting investor confidence. (Read More) Additionally, XRP recently surpassed Ethereum in fully diluted valuation (FDV), signaling strong momentum for Ripple’s native token. (Read More)

Meanwhile, former U.S. President Donald Trump is rumored to be negotiating a deal with Binance, which could impact regulatory policies for crypto exchanges in the U.S. (Read More) These developments coincide with Bitcoin’s price surge following a drop in U.S. inflation to 2.8%, sparking renewed optimism in the crypto market. (Read More)

With the increasing mainstream adoption of cryptocurrencies, scams like phishing emails and fake meetings are becoming more frequent. As scammers refine their strategies, users must remain vigilant.

How to Stay Safe from Phishing Scams

• Never trust urgent emails urging you to move funds.
• Always verify official announcements directly from exchange websites.
• Do not use recovery phrases provided via email or messages.
• Double-check email senders for slight misspellings or fake domains.
• Enable two-factor authentication (2FA) for additional security.

As crypto adoption grows, so do cyber threats. Staying informed and practicing good security habits can help protect your assets from sophisticated scams.