Canadian Teens Impersonate Coinbase Support and Steal Over $4M in Crypto

According to a report by CBC on July 4, two Canadian teenagers have been arrested and are facing charges related to the theft of $4.2 million in cryptocurrency.

Teens stole $4.2M in BTC, ETH

According to authorities, the accused teenagers are believed to have orchestrated a significant theft of Bitcoin (BTC) and Ethereum (ETH) by impersonating Coinbase support and illegally accessing a victim's exchange account. The stolen amount in the recent incident is estimated at $4 million, but it is reported that the teenagers had control over a total of $13.4 million in cryptocurrency.

Const. Krista-Lee Ernst, a police officer based in Hamilton, Ontario, described the method employed by the culprits as spear phishing, which involves targeting a specific individual and manipulating them into disclosing their account information. This technique was utilized to deceive the victim and gain unauthorized access to their cryptocurrency assets.

The identities of the involved teenagers have not been disclosed, but they are known to have operated under the aliases “Felon” and “Gaze.” It has been reported that a portion of the stolen funds was used to acquire an Instagram account with the username “@zombie.”

These two individuals have been apprehended and are facing charges of theft over $5,000 and possession of proceeds obtained through criminal activity.

Although the case was initially reported by local Canadian authorities, the investigation received significant assistance from prominent U.S. law enforcement agencies. The FBI (Federal Bureau of Investigation) and the U.S. Secret Service's Electronic Crimes Task Force (ECTF) took the lead in the investigation starting in June 2023, as confirmed by Const. Ernst. It is worth noting that the victim of the theft is reported to be a U.S. citizen.

Coinbase is often impersonated by scammers

Given its prominent position as a leading cryptocurrency exchange, Coinbase has become a common target for scammers attempting to impersonate the platform. In 2021, the company acknowledged a significant phishing attack, which resulted in the theft of funds from approximately 6,000 users between March and May. In response, Coinbase made a commitment to reimburse the affected individuals for their losses during that period.

The following year, a group of investors filed a complaint against Coinbase, alleging that the company had not taken sufficient measures to prevent scams from occurring on its platform.

To help users protect themselves against phishing scams, Coinbase maintains a dedicated page that provides valuable information and guidance on how to identify and avoid falling victim to such fraudulent activities.

In addition, WikiFX also provides assistance to individuals who encounter issues such as unable to withdraw or significant slippage. Victims can make use of WikiFX's exposure platform, where victims cases can be reviewed by experienced professionals who can help resolve the problems. Moreover, traders can access more information and gain insights into how scammers set up their schemes through WikiFX's real-time news service. Don't hesitate any longer, download the WikiFX App now and take advantage of its features!