A Coinbase user reportedly lost about $34.9 million worth of BTC to scammers, according to crypto investigator ZachXBT.

Phishing emails falsely claim Gemini bankruptcy while Coinbase admits an employee accessed user info, highlighting growing crypto scam risks.

The stolen funds were swiftly moved across multiple blockchains, significantly complicating efforts to trace and recover them.

"As of March 14, Coinbase is transitioning to self-custodial wallets," the fake mail read. The scammers also send verification texts via SMS, urging users to call a fake support number.

A large-scale Coinbase phishing attack poses as a mandatory wallet migration, tricking recipients into setting up a new wallet with a pre-generated recovery phrase controlled by attackers.