Crypto Users Report New Scam Emails Impersonating Coinbase and Gemini

According to the report from Cointelegraph, there has been an increase in the number of phishing emails impersonating crypto exchanges Coinbase and Gemini. These emails attempt to lure users into setting up new wallets using pre-generated recovery phrases controlled by the scammers, in order to steal user assets. The emails claim to be from Coinbase, asking users to transition to self-custody wallets and providing instructions to download the legitimate Coinbase wallet, with April 1st set as the deadline for the transition. The emails also include pre-generated recovery phrases. Once users use these phrases to set up new wallets and transfer funds, all assets will fall into the hands of the scammers who can then potentially drain the wallets. The emails also mention a class-action lawsuit against Coinbase, falsely claiming that the court has ordered users to manage their own wallets due to Coinbase's sale of unregistered securities. Coinbase has acknowledged this scam and issued a statement on March 14th through X platform, warning users that they will never send recovery phrases and users should not enter recovery phrases provided by others. Similarly, the crypto exchange Gemini has also been targeted by similar phishing emails using the same strategy, claiming users need to set up new wallets due to recent court rulings. Gemini was previously sued by the SEC for allegedly offering unregistered securities through its Earn program, but the regulatory agency chose to terminate the legal action on February 26th.