The encryption fraud has become more frequent and more advanced as industry growth. Billions of dollars were taken by malicious actors targeting encryption users, and even those who have a technical background have failed to avoid them.
Coinbase's stock price trends to the upside on the daily chart. Source: COINUSD on Tradingview
Coinbase fraud affects elderly victims
Senior Detective Zachbt unveil A fraud claim that Christian “Daywo” Nieves. According to the investigation, the bad actor stole more than $ 4 million of Coinbase users by impersonating the customer support representative to exchange Crypto.
As shown on the image below, and according to the investigation, the perpetrator used the stolen money to buy luxury elements. Zachxbt claims that most stolen money was lost during gambling in online casinos.
DayTwo's Instagram account showing luxury items allegedly purchased with stolen funds. Source: ZachXBT via X
The investigator explained the way to operate by Daywo to perform the fraud. According to the results, the bad actor operated a call center where he also worked as a caller, and later persuaded Crypto users to install and prepare Coinbase.
The keys to this portfolio were subjected to danger, which allowed the group to move and withdraw money without the permission of the owners. In order to verify the harmful activities conducted by the Daytwo and its partners, Zachxbt follows a deal worth $ 240,000 stolen from an elderly victim.
As shown in the video, recorded in November 2024, $ 240,000 was linked directly to the portfolio participating in the fraud. Part of the stolen assets has been transferred to Monero (XMR) and was deposited into the online casino, Roebet.
5/ Daytwo loves gambling on Discord calls with friends.
The registration below shows the name of his Roebet user “Pawsonhips” where the address of his deposit leaks on the browser tab.
0x940970549037634c517deb741B16112B52E0AD1 pic.twitter.com/i38xvbocuu
Zachxbt (Zachxbt) June 23, 2025
The stolen money lost in the encrypted gambling
Zachbt also claims that it was customary to gamble DayTWo with his friends while flowing on Discord. In one of these sessions, the Daywo displays its username for the online casino, “Pawsonhips”, accidentally leaks one of the titles related to fraud.
The investigator:
I tracked the casino deposit address that connects ONChain to 30+ of the suspected thefts. I expect that there will be many additional victims that I can’t directly tie. While there is a possible overlap between the multiple actors of the threat, the vast majority of activity relates to Daytwo.
When Daytwo lost more and more money on the casino online, the revenue of fraud decreased, and the lower the money that it deposited on Roobet. Moreover, the bad actor and his friends also discussed public criminal activities about the calls of their dispute. Zachxbt added:
It is rare to see a deceitful social engineering with this blatant ignorance to hide their identity while bending the stolen money throughout social media. Since Daytwo is not a minor, it is an easy law for law enforcement. Unfortunately, any recovery of the victims is likely to be a small amount since the money was often gambling after thefts.
Image coverage from Unsplash, tradingView graph
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The post $4M Coinbase Scam Ends in Designer Splurge and Casino Blowout first appeared on Investorempires.com.
