Gemini Users Targeted by Scam Emails Amid Coinbase Privacy Concerns Highlighting Rising Risks of Crypto Fraud

• Crypto scams are surging as fraudulent emails and unauthorized data access incidents place investors at risk, calling for increased vigilance.

• With the rise in cryptocurrency popularity, scam tactics are evolving, as evidenced by the recent phishing attempts targeting major platforms.

• Experts caution that user education is crucial, emphasizing that legitimate platforms will never ask for sensitive information through unsolicited communication.

Fraud in the crypto space is escalating, with phishing schemes targeting users of exchanges like Gemini and Coinbase—remain alert to safeguard your assets.

Gemini Exchange Addresses Bankruptcy Allegations

Numerous reports have emerged on social media detailing a phishing scam involving mails falsely claiming that Gemini Exchange filed for bankruptcy. This fraudulent communication instructed users to transfer their assets to an Exodus wallet, leveraging fear to exploit investors.

These deceptive emails circulated widely on April 1, misleading recipients to act quickly under the guise of protecting their investments. The messages cleverly urged users to withdraw their cryptocurrencies into wallets controlled by the scammers.

“Do not follow these directions. Please retweet to protect those that may have been doxxed and sent this email,” tweeted Jason Williams, a contributor to Fox Business.

Phishing email targeting Gemini users. Source: Jason Williams on X

Within the emails, scammers claimed that Gemini had suffered a staggering loss of $1.2 billion, prompting even seasoned investors to reconsider their positions amidst market uncertainties. The lingering effects of previous crypto failures like FTX only add to the panic and urgency experienced by investors.

“I got one also. It is better than your typical ‘Coin Base’ one, but still not quite there. Might fool a boomer though,” commented one user on the platform X.

Experts reinforce the importance of verifying information through official channels and encourage users to avoid engaging with unsolicited communications. In light of these events, Gemini reiterated its commitment to user security, issuing a public warning regarding these scams.

“We recently learned that some Gemini customers are being targeted with scam emails requesting users to transfer their crypto to outside wallets. Please be aware that Gemini will never request that you send crypto to outside wallets,” the exchange articulated.

Coinbase Admits Employee Illegally Accessed User Account Data

In an alarming development, Coinbase has acknowledged a serious breach of privacy protocols, confirming that a customer service employee accessed user account information without authorization.

This incident has raised significant concerns regarding potential phishing scams that could emerge as a result of compromised user data. Mike Dudas, a notable crypto investor and co-founder at The Block, disclosed an email from Coinbase regarding the incident.

“That explains the fake Coinbase phishing emails and phone calls today,” he noted.

Coinbase note to customers. Source: Mike Dudas on X

The breach aligns with reports of growing phishing attempts where users are targeted through fake communications mimicking official Coinbase messages. Data from blockchain investigator ZachXBT highlighted that Coinbase users collectively lost over $65 million to related social engineering scams between December 2024 and January 2025.

“Coinbase did not detect it; I sent them the intel,” the investigator pointed out, stressing the failures in the security measures in place.

Moreover, crypto analyst Cobie raised alarms suggesting that similar issues might affect other platforms like Kraken, hinting at a potential new tactic by malicious actors infiltrating customer service roles to exfiltrate sensitive information.

Amidst these growing threats, ZachXBT emphasizes the necessity of conducting due diligence before engaging with new decentralized finance (DeFi) projects, particularly those based on existing, untested protocols.

Staying informed and cautious is essential in this rapidly evolving landscape, especially as scams continue to become more sophisticated.

Conclusion

As the cryptocurrency space expands, the risks of scams and unauthorized data access increase, making education and vigilance paramount for investors. Armed with knowledge and verification practices, users can better protect themselves against falling victim to fraud. Always ensure communications are verified through official channels to maintain the safety of your investments.