Coinbase Warns Users Following Tokenized Bitcoin Launch

On Sep 13, 2024

Coinbase warns users about scams following cbBTC launch, emphasizing the need to verify official contract addresses to avoid fraud.
The launch of cbBTC aims to bridge Bitcoin liquidity across multiple chains, enhancing financial network integration and user flexibility.

Coinbase, one of the largest cryptocurrency exchanges, has rolled out its new Coinbase Wrapped BTC (cbBTC), an ERC20 token fully backed 1:1 by Bitcoin held by the exchange. Initially, cbBTC will operate on the Base and Ethereum networks, with plans to expand to additional chains in the future. This development aligns with a previous CNF report on Coinbase’s plans to release wrapped Bitcoin after dropping a teaser on X.

As shared in a recent tweet by Coinbase, there are many fraudulent actors pretending to offer cbBTC. Therefore, Coinbase has shared the official contract addresses for cbBTC on Base and Ethereum.

There are many fraudulent actors pretending to be cbBTC. The contract addresses for cbBTC are:
Base: 0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf
Ethereum: 0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf
Learn more ↓https://t.co/mMXvAD4gQr
— Coinbase 🛡️ (@coinbase) September 12, 2024

Furthermore, as detailed in the Coinbase Blog, Coinbase issued an urgent warning to its community, alerting users to the presence of fraudulent actors attempting to exploit the release of cbBTC.

Scammers are reportedly pretending to offer cbBTC, prompting Coinbase to share the correct contract addresses for the token on both Base and Ethereum. The company stressed the importance of verifying addresses to avoid potential scams.

cbBTC represents a major milestone for Coinbase as it aims to link off-chain Bitcoin liquidity to fast, low-cost financial networks like Ethereum and Base. The token is expected to enhance the financial ecosystem by bridging assets across multiple chains, providing users with more flexibility and options to utilize their Bitcoin.

According to a recent CNF update, it was highlighted that Coinbase controls most of the custody market for Bitcoin and Ethereum ETF issuers, making it a centralized vulnerability that hackers could target. As of today, Bitcoin (BTC) is trading at $58,079.34, with a decline of 0.20% in the past day and a 4% surge in the past week.