A hacker has been sent to prison for draining over $900,000 from the accounts of several Coinbase users.
Elliot Gunton, a resident of the United Kingdom, and his accomplices designed fake websites that mimicked the prominent cryptocurrency exchange. Coinbase users trying to log into the exchange were redirected to these malicious websites, resulting in their accounts being compromised.
These websites are typically designed to collect user data. When a victim enters their log-in information, the sensitive data is recorded and sent to the attackers.
While the exact details of Gunton’s tactics were not disclosed, Judge Alice Robinson of the Norwich Crown Court said the scheme was “highly sophisticated” and was the result of significant planning and technical expertise.”
The phishing scheme was reportedly active between 2018 and 2019. According to a 2020 Chainlysis report, the period saw a significant uptick in crypto crimes, with over $4.3 billion worth of cryptocurrencies lost to various hacks and scams.
Gunton, who was 17 at the time, infiltrated over 500 Coinbase accounts and siphoned over $900,000. One United States resident allegedly lost over $16,000, while others were drained for hundreds and thousands of dollars.
He pleaded guilty to charges of conspiracy to commit fraud outside the UK and money laundering and is facing 43 months in prison.
Meanwhile, Coinbase has become the most impersonated crypto platform among global brands. According to a June 24 report from Mailsuite, the crypto exchange’s brand was tied to 416 reported phishing attacks over the past four years.
Most recently, on July 8, scammers pretended to be Coinbase employees and stole $1.7 million from a victim’s self-custody wallet. The victim was socially engineered into clicking a phishing link that compromised a part of his key phrase.
Scammers have also mimicked Coinbase Pro, Coinbase’s now-defunct professional trading platform. In May, an Indian national was charged with stealing $37 million in crypto from unsuspecting users via the fake Coinbase pro phishing website.
Security firm SlowMist has marked phishing as one of the leading causes behind crypto thefts in the second quarter of 2024.