Binance and Kraken successfully fend off imitation phishing attempts akin to those experienced by Coinbase.
In the ever-evolving world of cryptocurrency, security remains a top priority. Recently, several high-profile exchanges have faced phishing and hacking threats, with Coinbase suffering significant losses. According to ZachXBT, these losses can be attributed to Coinbase's aggressive risk models and its failure to adequately prevent social engineering scams.
The attackers aimed to create a list of Coinbase customers, intending to impersonate the company and trick victims into handing over their crypto holdings. However, it remains uncertain whether the scammers targeting Coinbase are the same individuals who attempted to bribe customer service agents at Binance and Kraken.
Binance, Kraken, and Coinbase have responded to these threats by collaborating on the Beacon Network, a pioneering real-time crypto crime response system developed by TRM Labs. This network enables immediate sharing of alerts on suspicious transactions among verified platforms, allowing them to freeze illicit assets within minutes, significantly reducing criminals' ability to move stolen funds across exchanges.
Coinbase itself has faced a significant breach in 2025, compromising around 69,461 accounts, primarily due to North Korea’s Lazarus group. In response, Coinbase invested roughly $400 million in enhanced security measures including biometric verification, extensive in-person training, and establishing U.S.-based security hubs to counter AI-driven threats and improve defense.
Binance and Kraken, on the other hand, have robust internal security measures in place. Binance employs features such as two-factor authentication, cold wallet storage, data encryption, anti-phishing codes, and an emergency fund called SAFU to protect assets and users. Kraken similarly emphasizes security with real-time monitoring and active participation in collaborative law enforcement efforts through the Beacon Network.
By joining forces through the Beacon Network, these exchanges are moving from reactive to proactive, coordinated defense mechanisms that connect exchanges, regulators, law enforcement, and investigators to identify and freeze compromised funds instantly. This collaboration marks a significant evolution in preventing breaches and safeguarding digital asset ecosystems.
It's worth noting that both Binance and Kraken's AI-driven security systems successfully detected the attack vectors and blocked the phishing attempts. In contrast, Coinbase users lost an additional $48 million within a single week in early May, although robust internal security measures at Binance and Kraken prevented any breaches.
ZachXBT has been tracking nine-figure sums stolen from Coinbase users over the past several months, with losses exceeding $300 million annually. However, no customer data was compromised during these attacks on Binance and Kraken.
In a notable instance, cybercriminals had bribed offshore customer service agents to obtain access to user data and account management information at Coinbase. However, these incidents have not been reported at Binance and Kraken.
The losses at Coinbase are significant, but it's important to note that no other exchange is experiencing issues on the scale of Coinbase, according to ZachXBT's observation. The collaboration between Binance, Kraken, and Coinbase through the Beacon Network is a step towards a more secure future for the cryptocurrency sector.
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