According to Cointelegraph, multiple cryptocurrency users have recently reported an increase in the number of fraudulent emails impersonating cryptocurrency exchanges Coinbase and Gemini. These emails attempt to entice users to use pre generated recovery phrases controlled by scammers to set up new wallets and steal user assets. In multiple examples posted on the X platform, scam emails claim to come from Coinbase, requesting users to transition to self custodial wallets and provide instructions for downloading legitimate Coinbase wallets, while setting April 1st as the deadline for conversion. The email also includes pre generated recovery phrases. Once users use these phrases to open a new wallet and transfer funds, all assets will fall into the hands of fraudsters, who may directly empty their wallets.
The email also mentioned a class action lawsuit against Coinbase, claiming that it was required by the court to manage its own wallet for selling unregistered securities. The fake email states: "Coinbase will operate as a registered broker, allowing purchases, but all assets must be transferred to the Coinbase wallet In fact, the US Securities and Exchange Commission (SEC) has dismissed the lawsuit accusing Coinbase of being an unregistered broker and selling unregistered securities on February 27th. Coinbase responded to this by stating that they were aware of the scam and issued a statement through the X platform on March 14th reminding users: "We will never send you recovery phrases, and you should not enter recovery phrases provided by others." In addition, the cryptocurrency exchange Gemini has also encountered similar scam emails. Scammers use the same strategy, claiming that due to recent court rulings, users need to set up a new wallet. Gemini was previously sued by the SEC for allegedly providing unregistered securities through its Earn program, but regulators chose to terminate the legal action on February 26th.
