Know the Details on How Coinbase and Gemini Users Are Being Targeted

A new phishing scam has emerged, targeting users of popular cryptocurrency exchanges Coinbase and Gemini. The scam, which several crypto users have flagged, asks individuals to transition their assets to self-custodial wallets by April 1st, 2025. The emails and SMS messages look legitimate, which has raised concerns within the cryptocurrency community.

Scam Emails Appear Legitimate: Warnings from Coinbase

On March 14, 2025, many Coinbase users received an email that seemed to come directly from the crypto exchange.

The email claimed, “As of March 14, Coinbase is transitioning to self-custodial wallets.”

It then instructed users to move their assets into self-hosted wallets to avoid potential legal issues. The message also included SMS verification texts, urging users to call a fake support number to assist with the transition.

Several users took to social media platform X to report the scam. One user noted, “Is anyone else getting the fake Coinbase emails and texts? They’re getting increasingly sophisticated.”

The scammers even mentioned a class-action lawsuit against Coinbase, stating that the court had mandated the transfer of assets into self-custody wallets by the deadline of April 1st.

Phishing Scam Tactics and Risk to Users

The phishing email not only used Coinbase’s name to make the scam appear authentic, but it also employed scare tactics to pressure users into acting quickly. The fraudsters warned that if assets were not transferred before the stated deadline, users could face severe consequences.

One crypto user commented, “Scammers are leveraging scare tactics to scam you using Coinbase’s own self-custody wallet and seed phrases scammers control.”

The email looked highly polished, mimicking Coinbase’s official communication style. Despite the authenticity of the message, it was clear that it was a well-organized phishing attempt.

In response to growing concerns, Coinbase issued an official statement warning its customers about the scam.

The exchange posted on X, advising users: “Never enter a recovery phrase given to you by someone else, even if they’re from Coinbase.”

Coinbase also emphasized that the exchange would never make unsolicited phone calls to customers, reinforcing their stance against fraudulent attempts to gain access to users’ assets.

Gemini Users Targeted in Similar Attack

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Not just Coinbase, but users of another major cryptocurrency exchange, Gemini, were also targeted by similar phishing attacks. On the same day, March 14, 2025, Gemini customers received emails with identical language to those sent to Coinbase users. The email falsely claimed that users needed to set up new wallets due to a recent court ruling.

A Gemini user wrote, “Looks like massive phishing scams ongoing. Got two emails targeting Coinbase and Gemini users.”

The perpetrators behind these attacks are using the same tactics across both platforms, making it harder for users to distinguish between legitimate communications and fraudulent ones.

While the US SEC had previously sued Gemini for offering unregistered securities, they dropped the enforcement action against the platform last month. This recent phishing campaign may be an effort to capitalize on the uncertainty surrounding regulatory actions.

How to Protect Yourself from Phishing Scams

To prevent falling victim to phishing scams, crypto users are urged to take several steps. First, always be cautious when receiving unsolicited messages or emails requesting sensitive information. If the communication appears to come from your exchange, verify it through official channels before taking any action.

Coinbase and Gemini both emphasize that they will never request private information such as recovery phrases through email or phone calls. Users are advised to keep their recovery phrases secure and never share them with anyone, even if they claim to be from the exchange.

Experts also recommend enabling two-factor authentication (2FA) on your crypto exchange accounts. This added layer of security can help prevent unauthorized access to your accounts, even if your login information is compromised.

Conclusion: Stay Vigilant Against Phishing Scams

The rise of sophisticated phishing scams targeting Coinbase and Gemini users highlights the growing threat to cryptocurrency holders. While these scams may appear legitimate, users must be cautious and vigilant to protect their assets. Both Coinbase and Gemini have issued warnings, but the best defense remains cautious behavior and secure practices such as verifying communications and safeguarding recovery phrases.

Cryptocurrency users are encouraged to stay informed and updated on potential security threats. By following best practices and staying alert, users can reduce their risk of falling victim to these scams. Keep following The Bit Journal and keep an eye on crypto scams.

FAQs

1. What is a phishing scam?
   

   A phishing scam is a fraudulent attempt to steal personal information, such as login credentials or private keys, by posing as a legitimate source.

2. How can I avoid phishing scams?

   To avoid phishing scams, be cautious of unsolicited emails or messages. Always verify the authenticity of the communication through official channels and never share sensitive information like recovery phrases.

3. What is a self-custodial wallet?
   

   A self-custodial wallet is a type of cryptocurrency wallet where you have full control over your private keys, meaning you are solely responsible for your funds.

4. Should I trust emails claiming to be from Coinbase or Gemini?
   

   No. Both Coinbase and Gemini have warned users about phishing scams. They will never request sensitive information via unsolicited emails or phone calls.

Glossary of Key Terms

• Phishing Scam: A fraudulent attempt to steal sensitive information, such as passwords or private keys, by masquerading as a legitimate entity.
• Self-Custodial Wallet: A cryptocurrency wallet where the user holds control of their private keys, rather than relying on a third party like an exchange.
• Recovery Phrase: A set of words generated when creating a cryptocurrency wallet that is used to recover or restore access to the wallet.

References

1. Coinbase Phishing Scam Warning: Coinbase X Official
2. Gemini Phishing Attack Details: CryptoNews

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