Crypto Scam: ZachXBT Aids Recovery of Stolen Funds In Coinbase-Linked Scam

Ronny Mugendi
October 8, 2024
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Crypto Scam: ZachXBT Aids Recovery of Stolen Funds In Coinbase-Linked Scam

Highlights

  • ZachXBT recovered $275K from a Coinbase social engineering scam.
  • Chainalysis reports crypto scam inflows nearly doubled in early 2024.
  • FBI recently seized $6M in crypto from a Southeast Asia-based scam.

Crypto scam: Blockchain investigator ZachXBT has recently facilitated the recovery of approximately $275,000 in stolen cryptocurrencies from a Coinbase customer who fell victim to a social engineering crypto scam. This scam reportedly siphoned around $5 million in assets from various victims. The recovery and ongoing investigation highlight significant vulnerabilities within the digital asset community.

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ZachXBT Tracks Down $275K in Crypto Scam Involving Coinbase

According to a recent tweet, ZachXBT helped recover $275,000 from an elaborate social engineering crypto scam. Scammers posing as Coinbase support staff deceived an elderly US resident in the incident. They targeted the victim’s life savings and manipulated them into transferring their holdings to a fraudulent account.

ZachXBT traced the stolen assets across multiple blockchain platforms and successfully recovered the funds. According to the blockchain investigator, the funds will be returned to the victim immediately.

However, this case was part of a pattern of crypto scams involving over $5 million stolen. ZachXBT noted that the scammers laundered the funds through complex pathways, including unlabelled centralized exchanges and the Tron blockchain, before converting them into stablecoins at an OTC desk. The investigation is ongoing, with efforts to identify other victims and prevent future incidents.

More so, the scam unveiled by ZachXBT serves as a critical reminder of the risks associated with digital asset transactions, particularly for less tech-savvy people.

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Rising Trend in Scams And Regulatory Responses 

According to a report by analytics firm Chainalysis, in early 2024, stolen fund inflows nearly doubled from $857 million to $1.58 billion, reflecting a worrying trend in crypto scams.. In early 2024, stolen fund inflows nearly doubled from $857 million to $1.58 billion, reflecting a worrying trend in crypto scams. 

Additionally, these incidents pose a threat to individual investors and jeopardize the integrity of the broader crypto ecosystem.

For instance, a recent crypto scam saw 250 UK investors fall for a fake Bybit demo account that saw them lose $650, 000. The scammer, called “Ape 31,” had changed the deposit addresses, which made it difficult to identify him and to take back the stolen amount

Due to the recent upsurge in the number of such scams, the Commodity Futures Trading Commission (CFTC) alongside the Securities Exchange Commission (SEC) is enhancing efforts to curb cryptocurrency scams especially the so-called “pig butchering”. These schemes involve scammers forming romantic relationships to gain victims’ trust, then leading them to invest in nonexistent opportunities. 

Collaborating with the FBI, IRS, and the American Bankers Association Foundation, the CFTC is equipping the public with crucial knowledge and tools to identify and avoid these deceitful tactics.

Following these efforts, most recently the FBI seized over $6 million in cryptocurrencies linked to a Southeast Asia-based scam targeting US investors. Assistant Director Chad Yarbrough emphasized the severe impacts of these fraud schemes. He also noted the significance of the FBI’s ongoing actions to mitigate such devastating losses to Americans. 

These collective actions underscore the urgent need for increased awareness and enhanced regulatory frameworks.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.