A 67-year-old retired artist, Ed Suman, has become the latest high-profile victim in a wave of sophisticated crypto scams after losing his entire digital portfolio—worth over $2 million—to fraudsters posing as Coinbase support representatives.
Suman, who spent nearly 20 years helping construct major art installations, including Jeff Koons’ iconic Balloon Dog sculptures, turned to cryptocurrency investing after retirement. Over time, he accumulated 17.5 Bitcoin and 225 Ether—assets he carefully stored in a Trezor hardware wallet, a method widely considered one of the most secure ways to guard crypto holdings. But in March, that sense of security was shattered.
Suman received a text message claiming to be from Coinbase, warning of suspicious account activity. Shortly afterward, a man identifying himself as “Brett Miller” from Coinbase’s security team called and demonstrated an unsettling level of knowledge about Suman’s wallet setup. He persuaded Suman to follow a series of steps for what was framed as a routine verification process—steps that included entering his wallet’s seed phrase into a fake Coinbase lookalike website.
Nine days later, another impostor followed up with a second call, repeating the scam. By the end of that interaction, Suman’s crypto holdings—representing the bulk of his retirement savings—were gone without a trace.
Coinbase Recent Breach Tied to Bribed Support Staff
The phishing scam comes just in the aftermath of a security incident at Coinbase, where an internal breach compromised sensitive customer data. According to company disclosures, the breach involved customer support agents who were bribed by malicious actors to grant unauthorized access to user information.
The attackers reportedly gained access to personal details including customer names, account balances, and transaction records, after which they demanded a $20 Million ransom from the exchange. Coinbase confirmed that approximately 1% of its monthly transacting users were affected, and that they were not going to pay the ransom.
One of the most high-profile individuals caught in the breach was Roelof Botha, managing partner at venture capital firm Sequoia Capital. While there is no evidence that his funds were accessed, the incident has raised alarm about how vulnerable even top-tier clients can be when insider manipulation is in play.
Coinbase’s Chief Security Officer, Philip Martin, confirmed that the implicated customer service representatives were contractors based in India. All involved personnel have since been terminated. In response to the breach, Coinbase announced plans to allocate between $180 million and $400 million for user reimbursements and systemic remediation efforts.
The breach casts a spotlight on the risks of outsourcing critical security functions and the need for more robust internal controls. As centralized exchanges continue to scale, the pressure is mounting for firms like Coinbase to not only safeguard digital assets—but also fortify the human elements of their infrastructure.
Rise in Scams Targeting Older Crypto Investors
The FBI has repeatedly warned that social engineering scams are among the fastest-growing forms of cybercrime. These attacks often involve impersonation, psychological manipulation, and urgency tactics designed to catch victims off guard.
Elderly and retired individuals have emerged as prime targets, especially those who hold significant crypto assets but may not be deeply familiar with the nuances of blockchain security. According to IC3, crypto-related losses among individuals over 60 years old increased by more than 80% in 2024, with cumulative losses exceeding $1.1 billion.
Just two months ago, a similar case emerged in Florida, where a man in his 70s lost $750,000 to scammers posing as Binance support. In both instances, the fraudsters played on confusion and urgency, tricking victims into relinquishing full control of their wallets under the guise of protection.
Quick Facts
- Ed Suman lost $2 million in crypto to a Coinbase impersonation scam.
- The scam may be linked to an insider breach at Coinbase.
- Over 1% of Coinbase users were affected by the data leak.
- Crypto scams targeting older investors rose 80% in 2024.
