Scammers Target Crypto Users With Fake Coinbase and Gemini Emails

These scams try to trick users into creating new wallets using recovery phrases that scammers control.

Screenshots shared on X show emails claiming to be from Coinbase and Gemini, instructing users to switch to self-custody wallets. The emails include a deadline—April 1—and direct recipients to download the supposedly official wallet, which contains a harmful link.

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Scammers also provide pre-generated recovery phrases. If users create wallets using these phrases, they gain full access and can steal users' funds.

Coinbase has acknowledged the scam and issued a warning in a March 14 post on X, reminding users:

We will never send you a recovery phrase, and you should never enter a recovery phrase given to you by someone else.

As of writing, Gemini has not responded to the scam reports.

The emails reference a class-action lawsuit against Coinbase and Gemini, which falsely claimed the companies were ordered by a court to require users to manage their own wallets.

One message from the fake email stated, "Coinbase will operate as a registered broker, allowing purchases, but all assets must move to Coinbase Wallet".

The US Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase on February 27, which dismissed claims that the exchange had sold unregistered securities.

Meanwhile, crypto founders recently warned that scammers tried to trick them into downloading malware. How? Read the full story.