Coinbase Users Targeted: $34.9 Million in Bitcoin Scammed, Expert Warns of Ongoing Threats

On March 28th, prominent on-chain investigator ZachXBT disclosed troubling findings regarding potential fraud associated with Coinbase. He reported that a user reportedly fell victim to a significant scam, losing approximately $34.9 million (equivalent to 400.099 BTC) in a single transaction. This incident highlights a disturbing trend, as it appears that multiple users of the platform have experienced similar scams over the past two weeks. Investigations revealed that the stolen funds were being converted through a cross-chain process involving Thorchain and Chainflip, before ultimately being transformed into DAI. Alarmingly, despite the repetitive emergence of these scam addresses across various victims’ accounts, Coinbase has yet to integrate adequate compliance measures to flag these addresses, raising concerns about the platform’s security protocols and user protection efforts.