Since I just published my book (Bitcoin Hands-On! 28 “learn by doing” exercises to master the basics of managing your own Bitcoin, including wallets, transactions, and self custody (https://www.amazon.com/dp/B0F4SZSCH8), I was curious when I got the below email.
Titled "Transition Your Assets to Self-Custody", and from Gemini, I was thinking:
-Why would it be me that gets this email? I can't remember doing anything on Gemini. Is it possible I just forgot?
-Why would an exchange like Gemini promote self custody? For some exchanges like Bull Bitcoin, that send your purchased bitcoin directly to an exchange, it makes sense, but for companies like Gemini it doesn't.
So I started reading it. And then as soon as I saw the SEED PHRASE (yes, there was a "seed phrase" in the email - it was "my unique seed phrase") I looked more carefully at it. The email sender domain was bethebeast.com, which was probably fake.
Here's what they want you to do:
Steps to Transition to Crypto.com Wallet
As part of the settlement, you are required to transfer your assets to a self-custodial wallet by May 29, 2025. Our partnership with the Crypto.com Wallet provides a secure, user-friendly solution supporting a broad range of cryptocurrencies. Below is your unique 12-word recovery phrase for your Crypto.com Wallet, essential for wallet setup and access. Please follow these steps:
- Install Crypto.com Wallet: Download the app from crypto.com/onchain.
- Set Up Your Wallet: Select “I already have a wallet” and enter the 12-word phrase provided below to configure your Crypto.com Wallet.
- Transfer Assets: Log in to Gemini, send your funds to your new Crypto.com Wallet address, and verify the transaction.
Safeguard Your Phrase: Store the recovery phrase offline in a secure location. Never share it or store it digitally.
Your 12-Word Recovery Phrase:
(then came a seed phrase)
Important: This phrase is the key to your Crypto.com Wallet. Keep it confidential and secure. Gemini staff will never request it.
Then, of course, if you do transfer bitcoin from Gemini to the seed phrase THAT THEY PROVIDED, they'll steal it.
I sure hope this scam doesn't fool anyone. But I think they'll probably be successful, at least with some people. There's so little understanding of the basics of wallets, seed phrases, etc.