Crypto investigators ZachXBT and tanuki42 accuse Coinbase of failing to address critical security vulnerabilities, resulting in losses exceeding $300 million annually for its users. In a report detailing over $65 million in losses during December 2024 and January 2025 alone, they noted that this figure likely underrepresents the true losses, as it does not include unreported police complaints. Investigators pointed out that scams often involve sophisticated tactics from actors primarily based in India, who specifically target US customers. They criticize Coinbase's inadequate response to ongoing security incidents, including those related to old API keys and a verification code bug. The report highlights that Coinbase's customer support has been ineffective and fails to provide timely assistance to users, leading to substantial financial losses. One scammer notably shared they generate significant revenue through Coinbase-related phishing attacks, indicating a systemic issue with security on the platform. The investigators urge Coinbase to implement urgent changes to protect its users from escalating threats.

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