Coinbase Global, Inc. (COIN), one of the world’s largest cryptocurrency exchanges, is facing renewed scrutiny following a massive phishing scheme and a significant data breach in 2025. Between a rogue “fake employee” stealing millions and a security incident exposing the personal data of nearly 70,000 customers, investors are rightfully concerned about the safety of their assets.
When exchanges fail to protect user data or adequate supervision allows fraudsters to drain accounts, victims may have legal grounds to recover their funds. If you or someone you know has suffered significant investment losses due to a Coinbase hack or data breach, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud and crypto-related cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.
The $16 Million “Fake Employee” Scheme
In one of the most brazen examples of coinbase account hacking to date, prosecutors in Brooklyn recently charged 23-year-old Ronald Spektor with orchestrating a massive phishing and social engineering scheme. Operating under the handle “@lolimfeelingevil,” Spektor allegedly defrauded approximately 100 traders out of nearly $16 million in cryptocurrency.
According to the Brooklyn District Attorney’s office, the scheme operated between April 2023 and December 2024. The allegations paint a disturbing picture of how easily trust was exploited:
- Impersonation: Spektor allegedly posed as a “Coinbase representative,” contacting users to claim their accounts were under attack by hackers.
- Social Engineering: Victims were tricked into transferring their funds to a “secure wallet” to safeguard them. In reality, these wallets were controlled by Spektor.
- Bot Attacks: Prosecutors claim Spektor hired bots to bombard victims with text message alerts, creating a sense of panic and legitimacy.
- Misuse of Funds: Instead of securing the assets, Spektor allegedly laundered the stolen crypto through various exchanges and lost approximately $6 million gambling in online casinos.
This case highlights a critical vulnerability: Coinbase cyber attacks often rely on manipulating users rather than breaking encryption. However, when these schemes succeed due to security lapses or leaked customer data, the exchange may bear responsibility.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
The 2025 Coinbase Data Breach
In addition to individual phishing attacks, Coinbase disclosed a major security incident in May 2025. The breach, which reportedly occurred in late 2024 but went undetected for months, exposed sensitive personal information for thousands of users.
Key Facts About the 2025 Breach:
- Affected Users: Approximately 69,461 customers were impacted.
- Exposed Data: The breach compromised names, phone numbers, email addresses, masked Social Security numbers, bank account identifiers, and government ID images (such as passports and driver’s licenses).
- Insider Involvement: Reports indicate the breach stemmed from unauthorized access by rogue overseas support staff who were allegedly bribed to hand over customer data.
- Ransom Demand: The attackers demanded a $20 million ransom, which Coinbase refused to pay. The company instead offered a $20 million reward for information leading to the perpetrators.
While Coinbase stated that passwords and private keys were not stolen, the leaked identity data provided fraudsters with the exact tools needed to conduct convincing cryptocurrency hacks and SIM-swap attacks.
A History of Regulatory Failures and Fines
Coinbase has faced repeated regulatory actions regarding its internal controls and compliance systems. These fines suggest a pattern of supervision failures that can leave investors vulnerable to hacked Coinbase accounts.
- New York Department of Financial Services (NYDFS): Ordered Coinbase to pay a $50 million penalty and invest another $50 million in its compliance program for failing to prevent “serious criminal conduct” on its platform.
- New Jersey Bureau of Securities: Issued a $5 million penalty and a cease and desist order related to the sale of unregistered securities.
- Dutch Central Bank (DNB): Fined the company $3.6 million (approximately €3.3 million) for providing crypto services without proper registration.
For investors, these regulatory actions reinforce the concern that rapid growth may have come at the expense of robust security and compliance protocols.
Our lawyers are nationwide leaders in investment fraud cases.
How Scammers Exploit Coinbase Users
Understanding the mechanics of a Coinbase cyber attack is critical for prevention and for establishing liability. Most current attacks utilize the data exposed in breaches to launch targeted social engineering campaigns.
The “Support” Impersonation
As seen in the Spektor case, fraudsters use leaked phone numbers and names to call victims, spoofing Coinbase’s official caller ID. They claim an account is compromised and demand the user read back a 2FA code or transfer funds to a “vault” or “safety wallet.” Coinbase will never ask for your password or 2FA code over the phone.
SIM-Swap Attacks
Using personal details like birthdays and partial SSNs exposed in data breaches, criminals contact mobile carriers to port a victim’s phone number to a new device. This allows them to intercept SMS verification codes and reset account passwords. In May 2022, a Coinbase user reportedly lost $96,000 through this exact method.
Phishing Campaigns (0ktapus)
Sophisticated hacking groups, such as “0ktapus,” have targeted both Coinbase employees and users with SMS phishing links. These fake login pages harvest credentials, allowing attackers to bypass security layers.
We Are The firm other lawyers
call for support.
Legal Options for Victims of Coinbase Hacks
If you have lost funds due to a Coinbase data breach or account takeover, you may have legal recourse. While Coinbase’s user agreement typically requires disputes to be resolved through arbitration, this does not mean you are without options.
Investors may be able to pursue claims based on:
- Negligence: If the exchange failed to implement reasonable security measures or respond to red flags.
- Breach of Contract: If the platform failed to deliver the “bank-level security” promised in its marketing.
- Consumer Protection Violations: If the company misrepresented the safety of its assets or the scope of a data breach.
How Meyer Wilson Werning Can Help
Recovering lost cryptocurrency is complex. It requires proving that the loss was not solely due to user error but was facilitated by the exchange’s security failures or negligence.
At Meyer Wilson Werning, we investigate the root cause of the loss, including whether leaked data contributed to the theft or if the exchange failed to stop suspicious transactions. We have extensive experience navigating the arbitration process to help investors recover their assets.
If you suffered losses due to the security failures at Coinbase, contact us today for a free consultation. Our attorneys have extensive experience handling investment loss cases and can help determine whether your losses were the result of negligence or inadequate security measures.
Frequently Asked Questions
What information was compromised in the 2025 Coinbase data breach?
The breach exposed customer names, email addresses, phone numbers, masked bank account details, masked Social Security numbers, and images of government-issued IDs like passports and driver’s licenses.
Can I sue Coinbase if my account was hacked?
Most Coinbase user agreements include a mandatory arbitration clause, which means you likely cannot file a lawsuit in court. However, you can file a claim through arbitration to seek recovery for losses caused by negligence or security failures.
How did the “fake employee” scam work?
A fraudster, identified as Ronald Spektor, allegedly contacted users posing as a Coinbase security representative. Using leaked personal data, he convinced victims their accounts were under attack and tricked them into moving funds to a wallet he controlled.
Is Coinbase responsible if I am a victim of a SIM-swap attack?
Coinbase may be liable if they failed to enforce adequate security protocols, such as delaying password resets after a number change or ignoring red flags of suspicious activity. Legal responsibility often depends on the specific facts of the security failure.
What should I do if I suspect my Coinbase account is compromised?
Immediately contact Coinbase support to lock your account. Document all unauthorized transactions, save copies of any suspicious emails or text messages, and file a report with the FBI’s IC3. Then, contact a securities fraud attorney to evaluate your recovery options.
Recovering Losses Caused by Investment Misconduct.
