Coinbase User Loses $11.5 Million in cbBTC Due to Alarming Social Engineering Attack

According to recent insights shared by on-chain investigator ZachXBT, a significant security breach occurred last month involving a Coinbase user. This incident has been classified as a **social engineering attack**, resulting in the loss of 110 cbBTC, equivalent to approximately **$11.5 million** on the Base network. Following the theft, the culprits enacted a complex laundering scheme that included exchanging the stolen assets across various platforms and utilizing bridging services, culminating in a **CoinJoin** procedure that obscured the origin of the funds by merging them with those of other victims on the Ethereum blockchain. This alarming incident highlights the critical vulnerabilities associated with digital asset exchanges, particularly in light of the reported annual losses exceeding **$150 million** attributable to social engineering schemes exploiting **data breaches**, email fraud, and insufficient detection measures. It underscores the necessity for enhanced security protocols within the cryptocurrency landscape.