Beware of new cryptocurrency scam emails impersonating Coinbase and Gemini

With fraudsters posing as respected exchanges like Coinbase and Gemini, a fresh wave of phishing schemes is finding its way into the inboxes of bitcoin consumers. These false emails, according to reports, employ pre-generated recovery phrases to try to entice users into moving their crypto assets into self-custody wallets, therefore granting criminals complete access to their money.

Claiming a non-existing court judgment as justification for their shift, the bogus emails assert users must switch to self-custodial wallets by April 1. Often appearing rather convincing, the emails have official-looking branding and directions to download approved wallet apps. They also feature pre-made recovery words, which is a red flag indicating an attempted fraud. Scammers can quickly drain the money once consumers construct wallets using these terms and move their assets.

The emails cite a class-action lawsuit against Coinbase, falsely claiming that the business was compelled to move consumers to self-custodial wallets, thereby trying to pressure customers into compliance. Similar false mails aiming at Gemini users have been sent using similar strategies to fool them into opening new wallets.

Reacting to these claims, Coinbase has advised consumers not to use a recovery phrase offered by outside third parties. The correspondence promised clients that it would never request this kind of data by email or text. Gemini users have also complained about identical phishing attempts from scammers, saying they have to relocate their assets based on a court judgment.

Although phishing scams are not new in the bitcoin ecosystem, their growing complexity demands more carefulness. With billions lost to related schemes recently, blockchain security companies have underlined phishing as one of the most important dangers in the realm of digital assets.

Always check correspondence immediately with official sources to guard yourself; avoid clicking on dubious links and never use recovery words offered by unidentifiable parties. If you encounter a suspicious email, please forward it promptly to the appropriate exchange and stay informed about emerging crypto frauds.