Security in question as Gemini and Coinbase users targeted in latest crypto scam surge
The recent incidents serve as a stark reminder of the risks in the crypto space
Crypto scams are once again in the spotlight as fraudulent emails impersonating Gemini Exchange circulate online, falsely claiming the platform has filed for bankruptcy.
Simultaneously, Coinbase has confirmed that one of its employees unlawfully accessed user account data, sparking fresh concerns over insider threats and data privacy in the crypto industry.
The phishing campaign targeting Gemini users, first widely reported on April 1, instructs recipients to withdraw funds to a fake Exodus wallet using a provided seed phrase — a tactic designed to trick victims into surrendering full access to their crypto holdings.
Key takeaways
- Phishing emails falsely claim Gemini bankruptcy: Scam messages direct users to "protect funds" by transferring them to a wallet controlled by attackers.
- Coinbase admits internal data breach: An employee accessed customer information without authorization, raising data security concerns.
- Wider industry alarm: The incidents highlight ongoing vulnerabilities in both external phishing threats and internal platform integrity.
Phishing scam exploits Gemini branding
Numerous users across social media reported receiving emails falsely announcing that Gemini had filed for bankruptcy. The emails urged recipients to immediately withdraw their assets to a so-called “safe” Exodus wallet — accompanied by a seed phrase, which scammers could use to access all funds.
Fox Business contributor Jason Williams, one of many warning the public, tweeted: “Do not follow these directions. Please retweet to protect those that may have been doxxed and sent this email.”
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Gemini has not filed for bankruptcy and has confirmed that the emails are entirely fraudulent. The company has urged users to avoid interacting with the message and to verify all communication through official channels.
Also recall, earlier it became known that Gemini applied for an initial public offering (IPO).
Coinbase confirms insider breach
While Gemini battles external scams, Coinbase is facing scrutiny from within. The exchange confirmed that an employee accessed customer account data without proper authorization, although the extent and nature of the accessed information have not been fully disclosed. Users also started receiving false emails purportedly from Coinbase.
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The breach comes amid growing industry pressure for stronger internal controls and transparency, especially following a series of high-profile cybersecurity lapses across financial tech platforms. As a reminder, recently Coinbase users lose $46 million in two weeks.
Conclusion: Urgent need for user vigilance
The rapid expansion of the cryptocurrency exchange market underscores the critical importance of user security, especially in light of the increasing sophistication of crypto-related scams.
Over the past five years, demand for crypto trading platforms has grown substantially. In 2021, the market size for crypto exchanges was valued at $32.77 billion, accounting for 35% of the global cryptocurrency market share.
Looking ahead, analysts project even steeper growth. By 2030, the crypto trading platform market is expected to reach approximately $345.50 billion, driven by broader adoption and expanding institutional interest.
Crypto Trading Exchange Market Size. Source: Social Capital Market
The recent incidents at Gemini and Coinbase serve as a stark reminder of the persistent and evolving risks in the cryptocurrency space. Whether driven by external attackers or internal lapses, the consequences can be severe.
As the industry continues to expand, exchanges must prioritize cybersecurity protocols, and users should remain cautious, especially with unsolicited messages and unfamiliar links.
Earlier we reported that ASIC has intensified its fight against online investment fraud, successfully shutting down over 10,000 fraudulent websites and advertisements.
