Crypto Heist Revealed: Scammers Pull Five Figures Weekly Posing as Coinbase

Nick Neuman, CEO of Casa, a provider of Bitcoin BTC $93,716.92 self-custody solutions, recently encountered one of these scammers. Rather than falling for the trick, he confronted the caller, extracting insights into the scammer's methods and earnings.

According to the fraudster, their operation generates no less than five figures weekly, with one particular day yielding $35,000.

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Neuman shared the interaction in a video on X, revealing the scam’s strategy. The scammer began by falsely claiming a canceled password change request and sending a notification containing a harmful link.

When questioned about their targets, the scammer candidly disclosed they primarily target high-income individuals such as CEOs, CFOs, and software engineers. "You would be surprised, man. It's people like you, you’re a Chief Executive Officer at Casa..." the scammer explained.

The scammer further revealed that their data often comes from crypto companies, naming Unchained Capital as one such source.

They admitted to leveraging a tool called an “auto-doxxer” to gather more detailed information about their victims. Additionally, they spoof emails to appear as though they originate directly from Coinbase.

Unlike traditional phishing scams aimed at stealing passwords, the ultimate goal is to manipulate victims into transferring funds directly into wallets controlled by the scammers. To obscure the stolen assets, the criminals utilize Tornado Cash for laundering and Monero XMR $406.73 to erase the funds' digital trail.

To convert stolen crypto into fiat currency, the scammers avoid exchanges requiring identity verification. Instead, they rely on hardware wallets like Ledger, Trezor, and Trust Wallet to liquidate their assets.

The scammer revealed that it was easy to access company databases. They also mocked the lack of enforcement by asking:

If you lose $30,000, $40,000 in ETH, BTC, whatever, who are you going to call? The crypto police?

However, this isn’t the only instance of cybercriminals exploiting vulnerabilities for massive payouts. Just recently, a notorious hacking group called "Scattered Spider" was unmasked, with five members charged in a staggering $11 million crypto theft. How did they pull off such a high-stakes heist? Read the full story.