Blockchain analyst ZachXBT has revealed that over $46 million in suspected scams targeting Coinbase users occurred in March 2025, with a single Bitcoin theft worth $34.9 million standing out as the largest recorded incident.
Breakdown of the Thefts
In a Telegram update, ZachXBT detailed multiple transactions tied to stolen funds, which were bridged from Bitcoin (BTC) to Ethereum (ETH) and converted into DAI (DAI). The analyst traced the movements of the stolen assets and found that they were laundered through Thorchain and Chainflip before being converted into more private or stable digital assets.
The largest single scam accounted for 400.099 BTC ($34.9 million), while additional thefts included:
- March 26 – 60.164 BTC
- March 25 – 46.147 BTC
- March 16 – 20.028 BTC
Coinbase’s Compliance Tools Under Fire
A major concern raised by ZachXBT is Coinbase’s lack of action in flagging addresses associated with these scams. Despite the huge sums involved, he claimed that the exchange had failed to mark or prevent transactions linked to the theft.
“Coinbase has not flagged any of the theft addresses from these victims in compliance tools,” ZachXBT wrote on Telegram.
This is not the first time Coinbase has been criticized for failing to act on fraud cases. ZachXBT referenced a previous investigation in which over $65 million was stolen from Coinbase users between December 2024 and January 2025.
The Growing Social Engineering Scam Problem
The analyst suggested that Coinbase is facing a massive social engineering scam problem, estimating that users are losing up to $300 million per year. Social engineering scams typically involve fraudsters tricking victims into revealing sensitive information, such as wallet seed phrases or login credentials, leading to direct fund theft.
Coinbase has yet to respond to these latest allegations, but if the trend continues, the exchange may face mounting regulatory scrutiny over its handling of security issues.
Crypto Theft: A Persistent Industry-Wide Challenge
Crypto scams remain a major problem in the industry, with fraudsters increasingly using cross-chain swaps and privacy-enhancing services to evade detection. With Coinbase’s scale and global presence, its security measures are under heightened scrutiny, particularly as blockchain analysts continue to track stolen funds.
For more insights on crypto security and scam prevention, visit TheCoinInfo.
