Coinbase News: Users Lose Over $46 Million in Social Engineering Scams in March

In a distressing turn of events, Coinbase users have fallen prey to sophisticated social engineering scams, resulting in significant financial losses. Here’s a closer look at the incidents that transpired in March.

Coinbase Users Lose $46 Million to Social Engineering Scams in March

According to blockchain sleuth ZachXBT, Coinbase users lost over $46 million to social engineering scams in March. On March 28, ZachXBT reported that an unnamed Coinbase user lost approximately 400 BTC (worth around $34.9 million) in an elaborate theft. This theft was part of a broader pattern affecting US-based exchange users, with three instances occurring this month: 20.028 BTC stolen on March 16, 46.147 BTC on March 25, and 60.164 BTC on March 26. The attackers bridged the stolen funds from Bitcoin to Ethereum using THORChain or Chainflip.

FDIC Reverses Crypto Banking Policy

The Federal Deposit Insurance Corp. (FDIC) has reversed its policy that required banks to obtain prior approval before engaging in crypto activities. This standard, set in 2022, effectively prevented institutions from participating in the digital assets sector as they awaited approvals that never materialized. The FDIC, which oversees thousands of smaller banks, played a significant role in the crypto debanking saga. A recent courtroom fight with crypto exchange Coinbase unveiled letters showing the FDIC instructed banks to avoid new crypto matters while it developed policies, which never occurred. With this reversal, banks may now consider re-entering the crypto space.