PANews reported on March 17 that according to Cointelegraph, recently, multiple cryptocurrency users have reported an increase in the number of fraudulent emails impersonating crypto exchanges Coinbase and Gemini. These emails attempt to trick users into setting up new wallets using pre-generated recovery phrases controlled by scammers, thereby stealing user assets. In multiple examples posted on the X platform, fraudulent emails claim to be from Coinbase, requiring users to transition to self-hosted wallets and provide instructions for downloading legitimate Coinbase wallets, while setting April 1 as the deadline for the conversion. Pre-generated recovery phrases are also attached to the email. Once users use these phrases to open new wallets and transfer funds, all assets will fall into the hands of scammers, who may simply empty their wallets.

The email also mentioned a class action lawsuit against Coinbase, falsely claiming that it was required by the court to manage its own wallets for selling unregistered securities. The fake email reads: "Coinbase will operate as a registered broker and allow purchases, but all assets must be transferred to the Coinbase wallet." In fact, the U.S. Securities and Exchange Commission (SEC) dismissed the lawsuit accusing Coinbase of being an unregistered broker and selling unregistered securities on February 27. Coinbase responded that they were aware of the scam and issued a statement through the X platform on March 14 to remind users: "We will never send you a recovery phrase, and you should not enter a recovery phrase provided by others." In addition, the crypto exchange Gemini also encountered a similar scam email. The scammers used the same strategy, claiming that users need to set up a new wallet due to a recent court ruling. Gemini was previously sued by the SEC for allegedly offering unregistered securities through its Earn program, but the regulator chose to terminate the legal action on February 26.