Michaela
Blockchain investigator ZachXBT has publicly criticized Coinbase for its poor service, urging users to reconsider using the cryptocurrency exchange due to ongoing issues with its platform.
In a response to a post by Coinbase on X, the blockchain investigator appeared to mock the exchange’s statement, which claimed, “The future of money is more open, free, and efficient.”
ZachXBT alleged that Coinbase had locked him out of his account without providing a reason. He also highlighted a recent security breach involving the leak of customer data, which the exchange has yet to fully disclose, resulting in thefts.
“I cannot recommend Coinbase as an exchange to anyone (even though you offer decent APR on stables),” ZachXBT wrote.
In response to ZachXBT’s claims, Coinbase informed the investigator that a private message had been sent to address and resolve the issues with his account. “Why does this keep happening to so many people?” ZachXBT wrote in response.
The crypto community appeared to share ZachXBT’s concerns regarding Coinbase, with one user on X reporting receiving three scam texts daily from the exchange over the past two weeks, highlighting a significant increase in frequency.
An X user named Koi recommended that the blockchain investigator consider using Uphold or Binance instead of Coinbase. In response, ZachXBT pointed out that, to his knowledge, Coinbase remains the only major cryptocurrency exchange currently offering a 12% yield on stablecoins, emphasizing a key feature that sets the platform apart from its competitors.
“DeFi is not worth smart contract risk unless you are a giga brain actively managing your portfolio,” ZachXBT wrote.
In early February, Coinbase came under fire following a wave of social engineering scams that resulted in users losing millions of dollars. The incidents have sparked growing concerns over the platform’s security protocols and its ability to prevent fraudulent activities.
ZachXBT disclosed that between December 2024 and January 2025, users of the crypto exchange lost at least $65 million due to social engineering scams. However, he noted that the true extent of the losses could be much greater, as his analysis was based on a limited set of data, including direct messages and on-chain transactions.
Additionally, the blockchain sleuth’s investigation uncovered that Coinbase had experienced security breaches linked to the scams, which were not publicly addressed. Despite multiple warnings from cybersecurity experts, the platform has faced challenges in strengthening its security protocols.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
