ZachXBT Discovers a $4 Million Coinbase Scam Leaving Victims' Wallets Depleted
Christian Nieves, a New York-based con artist operating under the aliases Daytwo and PawsOnHips, has been linked to a sophisticated phone-based support scam that defrauded Coinbase customers of over $4 million. The scam, uncovered by blockchain and on-chain investigator ZachXBT, involved impersonating Coinbase customer support agents and tricking victims into opening Coinbase accounts and guiding them to phishing websites where they entered compromised seed phrases, giving the scammers full control over their cryptocurrency wallets.
The stolen funds were quickly funneled into crypto casinos, particularly Roobet—a casino known for lax licensing—and converted into privacy coins like Monero (XMR) to obscure their trail. Nieves also spent some of the money on luxury goods and openly flaunted his gains on social media. However, he lost most of the stolen funds through gambling at these crypto casinos.
A particularly notable incident involved an elderly victim who lost $240,000 in November 2024 to one of Nieves’ associates named Justin, also known as "Paranoia." The stolen funds were split, with some gambled at Roobet and others converted into Monero, highlighting the operation's use of privacy coins to cover their tracks.
On-chain investigator ZachXBT has exposed this phone-based support scam, identifying a cryptocurrency deposit address tied to Nieves' alleged gambling activity. The investigation remains active, with blockchain forensics confirming Nieves' involvement in over 30 thefts linked to his Roobet deposit addresses. ZachXBT's ongoing forensics and the recordings from the scam operations continue to unravel the full scope of Nieves’ criminal network.
Nieves made little effort to hide his identity throughout the scheme, discussing laundering stolen funds while openly displaying his face in recorded Discord calls. The scam siphoned more than $4 million from the wallets of Coinbase customers, and ZachXBT alleges that Nieves exhibited compulsive gambling behavior, placing bets on crypto casino platforms.
The case highlights the urgent need for stronger user protections, platform vigilance, and public awareness to combat social engineering in the digital asset space. The growing role of independent blockchain analysts like ZachXBT in exposing crypto-related fraud is becoming increasingly important in the fight against such scams. The authorities are now actively tracking the flow of illicit funds and working to dismantle Nieves' network.
- The cryptocurrency used in the funneling of stolen funds, including Monero (XMR), has the ability to obscure the trail due to its privacy features, as reported in various general-news and technology magazines.
- As Bitcoin magazine explain, the stolen funds from the phone-based support scam were distributed among luxury goods, crypto casinos like Roobet, and privacy coins, with a portion going to an associate named Justin, known as "Paranoia."
- The extensive use of privacy coins, like Monero, and the public flaunting of gains by the con artist, Christian Nieves, have raised concerns about crime and injustice within the digital finance ecosystem, sparking discussions on the need for enhanced user protections and platform vigilance.
