Woofun AI reports that Coinbase is collaborating with the Brooklyn District Attorney's Office to investigate an impersonation scheme involving approximately $16 million. The fraud targeted roughly 100 victims through social engineering tactics, with over $600,000 already recovered.

Coinbase clarified that the attacks exploited user trust rather than platform security flaws. The company supported law enforcement by identifying suspects, notifying victims, and conducting on-chain fund tracing. Users were advised that Coinbase will never request transfers to 'secure wallets' or ask for seed phrases.