ZachXBT, a crypto investigator and influencer, has urged Coinbase to take swift action as users reportedly lose "tens of millions every month" to scams. He accused the platform of doing "little to nothing" despite having the "power" to implement changes. ZachXBT made this statement in a February 3 post on X.
"Coinbase needs to urgently make changes as more and more users are being scammed for tens of millions every month," said Zachxbt. "Other major exchanges do not have similar panels created by scammers for fraud. Coinbase is in a position where they have the power to make these changes and set a good example but they have chosen to do little to nothing ."
According to ZachXBT, many Coinbase users have complained about account restrictions, which he attributed to risk models and what he described as Coinbase’s "failure" to prevent "$300M+" in yearly losses from "social engineering scams." He highlighted a case where a victim lost approximately $850,000, leading to the discovery of over 25 other victims linked to the scammer’s address "coinbase-hold.eth." The scammer allegedly gained the victim’s trust by using "spoofed phone numbers" and personal data from private databases, tricking them into believing their account had unauthorized login attempts and directing them to a nearly identical "cloned" Coinbase site.
Zachxbt's post
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A report by Reuters revealed that the UK's Financial Conduct Authority (FCA) fined Coinbase's UK unit, CB Payments Limited (CBPL), for failing to comply with a regulatory agreement aimed at strengthening financial crime controls. Despite restrictions on accepting high-risk customers, CBPL provided services to over 13,000 such clients, facilitating crypto transactions worth approximately $226 million. The FCA identified deficiencies in CBPL’s financial crime safeguards.
Coinbase was founded in 2012 as a cryptocurrency exchange offering a platform for trading, staking, saving, spending, and transferring crypto assets. It serves over 245,000 ecosystem partners in more than 100 countries and supports both individual and institutional users.
ZachXBT is an anonymous blockchain investigator known for exposing NFT scams, influencer misconduct, and fraudulent crypto projects. Since beginning his investigative work in May 2021 using on-chain analysis, he has uncovered suspicious transactions and held bad actors accountable. His efforts have led to the exposure of high-profile figures and projects such as BitBoy Crypto, Tai Lopez, and Pixelmon.
