Coinbase user loses $11.6 Million of Bitcoin Following a Notification Scam

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Bitcoin cybercriminal
Bitcoin cybercriminal

A Coinbase user has lost $11.6 million worth of Bitcoin in a scam. A federal judge this month approved a warrant to return $600,000 in Bitcoin from a Huobi Global wallet to the user. According to the federal investigators, the $600,000 found on a Huobi Global wallet was a portion of the $11.6 million stolen from the trader’s Coinbase account.

In April, the scam victim bought 200 Bitcoin. Right after the buy, a notification appeared on the user’s device telling them that their Coinbase account is locked. According to the complaint filed by the U.S. Attorneys Office in Los Angeles, the user received a notification that seemed like it is coming from Coinbase although it wasn’t the case.

In fact, the notification was coming from the fraudster who had set up the scam. Consequently, the hacker transferred $11.6 million worth of Bitcoin – about 206 Bitcoin, investigators said.

It is still unknown how the alleged hacker knew about the Coinbase transaction. Coinbase declined to comment.

The victim allowed the scammer to access his account

The victim was identified in court documents as G.R. He received a notification that allured him that he’ll connect to a Coinbase customer service rep, according to a federal complaint filed by investigators last month.