Coinbase helps Brooklyn District Attorney’s office combat fraud case involving approximately $16 million

Odaily reported that Coinbase has officially announced its cooperation with the Brooklyn District Attorney's Office in New York, assisting in the investigation of a long-term impersonation scam targeting platform users and supporting victims in recovering their funds.

According to the Brooklyn District Attorney's Office, a Brooklyn man has been charged with impersonating Coinbase customer service over an extended period. Using social engineering tactics, he tricked users into believing their accounts had been compromised, instructed them to transfer funds to a "safe wallet," and subsequently diverted and stole the funds. The case involves approximately 100 victims, with the stolen amount close to $16 million. Over $600,000 has been recovered so far.

Coinbase stated that such scams do not stem from platform security vulnerabilities but are social engineering attacks that exploit user trust and a sense of urgency. Common methods include falsifying identities, impersonating customer service, and creating panic about account risks. The company said it has assisted law enforcement agencies in various investigative efforts, including identifying suspects, aiding victim notification, providing data support for legitimate requests, and on-chain fund tracking. It emphasized that blockchain traceability helps law enforcement trace the flow of funds.

Coinbase also reminded users that the platform will never ask users to transfer funds to a "safe wallet" or request their 2FA codes, seed phrases, or password reset links. It advised users to contact customer service only through official in-app channels. Additionally, Coinbase stated it will continue to strengthen anti-fraud mechanisms, user education, and cooperation with law enforcement to address increasingly sophisticated crypto asset fraud.