Coinbase Removes Legacy Recovery Tool Amid Security Concerns

Coinbase has taken down a recently flagged 'legacy recovery' tool after on-chain investigators raised concerns that it could be used to trick users into giving up their seed phrases.

The tool, which was hosted on an official Coinbase domain, required users to paste their mnemonic phrase in plain text and also suggested they retrieve it from Google Drive backups.

A team of blockchain security experts pointed out technical flaws on the page, including a lack of proper sitemap, making it easy to clone and weaponize on lookalike domains.

The concerns raised by the investigators aren't unfounded. Recent data shows that attackers are increasingly targeting users instead of exploiting code vulnerabilities.