Crypto users have reported a rise in scam emails made to look like they’re from crypto exchanges Coinbase and Gemini that attempt to get users to set up a new wallet with pre-generated recovery phrases controlled by scammers.
In several examples posted to X, the email claims to be from Coinbase, asking users to transition to self-custodial wallets and providing instructions on downloading the legitimate Coinbase Wallet, giving a deadline of April 1 to make the switch.
Source: Steve Kaczynski
However, it also provides pre-generated recovery phrases. Once users open a new wallet with those phrases and transfer funds, all the assets will be available to the threat actor, who could drain the wallet.
The email mentions a class-action lawsuit against Coinbase alleging it has sold unregistered securities, which has resulted in a court