Cryptocurrency scams are rapidly increasing. As more people flock to digital currencies, scammers are exploiting the industry's rapid growth to deceive investors.
Recently, many cryptocurrency users reported receiving fraudulent emails claiming that Gemini exchange has filed for bankruptcy. Meanwhile, Coinbase exchange admitted that an employee illegally accessed user account information.
Gemini Exchange Clarifies Bankruptcy Rumors
Multiple accounts on social media emphasized this scam, revealing that emails are being circulated falsely claiming that Gemini has filed for bankruptcy. The email instructed users to withdraw to the Exodus wallet and provided seed phrases.
This phishing email was shared on April 1st, urging recipients to withdraw funds to a designated cryptocurrency wallet to protect their assets. This was an attempt to trick users into transferring cryptocurrency to a wallet controlled by scammers.
"Do not follow these instructions. Please retweet to protect those who received this email," – Jason Williams, Fox Business contributor wrote.
The fraudulent email claimed that the Gemini exchange suffered $1.2 billion in losses. Some novice investors might believe this email and transfer their assets to the specified address. Some victims of the FTX exchange bankruptcy are still tracking their funds years after the incident.
"I received one too. Better than the typical 'Coinbase' one, but still insufficient. However, baby boomers might fall for it," – an X user mentioned.
However, security experts advise users to always verify information through official channels, avoid clicking unwanted links, and refrain from sharing personal data. Gemini responded to this scam by acknowledging the threat to users and issuing an official warning.
"We have been made aware that Gemini customers are being targeted by fraudulent emails requesting to transfer cryptocurrency to external wallets. Gemini will never request that you send cryptocurrency to an external wallet," – the exchange explained.
Coinbase Admits Employee Illegally Accessed User Account Data
The Coinbase exchange acknowledged a data breach where an employee unauthorized accessed user account information.
This breach raised concerns about potential fraud targeting Coinbase users. Mike Dudas, a cryptocurrency investor and co-founder of The Block, shared an email confirming the incident.
"Explained today's fake Coinbase phishing emails and calls," – he stated.
This breach aligns with phishing attempt reports, with users receiving fake emails and calls appearing to be from Coinbase. These incidents reflect a widespread wave of cryptocurrency-related scams.
Blockchain investigator ZachXBT reported that Coinbase users lost over $65 million to social engineering scams between December 2024 and January 2025.
"Coinbase did not detect this. I sent them the information," – the blockchain investigator mentioned.
Additionally, cryptocurrency analyst Cobie suggested that Kraken might be experiencing similar issues. According to his post, a new attack could involve infiltrating customer service roles to leak data.
"Kraken has also recently faced this issue. Perhaps it's a new plan by attackers (entering as customer service staff to leak data)," – the analyst noted.
Amid these incidents, ZachXBT recently explained how to avoid cryptocurrency scams. He emphasizes the importance of thorough research before participating in new DeFi protocols, especially when existing projects are forked on EVM chains.
He also advises caution when dealing with projects with few trusted followers, as this could indicate potential fraud.
Therefore, users must be vigilant against sophisticated phishing scams and unauthorized data breaches.
