Ed Suman, a retired artist who once played a pivotal role in crafting Jeff Koons’ iconic Balloon Dog sculptures, recently found himself ensnared in a devastating cryptocurrency scam. Earlier this year, Suman, 67, was duped by a fraudster masquerading as a Coinbase support representative, resulting in the loss of over $2 million in digital assets. This cautionary tale underscores the lurking dangers in the burgeoning world of crypto.
The Anatomy of a Scam
The ordeal began in March, when Suman, an enthusiastic crypto investor post-retirement, received a seemingly innocuous text message. It warned of unauthorized access to his Coinbase account. Trusting the message, he engaged with the sender, which led to a phone call from an individual claiming to be Brett Miller, a member of Coinbase’s security team. Demonstrating an unsettling depth of knowledge about Suman’s investments—17.5 Bitcoin and 225 Ether stored securely in a Trezor Model One hardware wallet—the impersonator convinced Suman that his funds were at risk and led him through a bogus “security procedure.”
The procedure required Suman to enter his wallet’s seed phrase into a counterfeit website designed to mimic Coinbase’s interface. The ruse was effective. Nine days later, a second caller repeated the process, and by the end of their interaction, Suman’s crypto holdings had vanished.
Coinbase’s Troubles: A Larger Context
This scam is not an isolated incident but part of a broader narrative involving Coinbase, one of the most prominent cryptocurrency exchanges. In a disclosure made this week, the company admitted to a significant data breach that compromised sensitive user information. Among the stolen data were customer names, account balances, and transaction histories. Sources indicate that around 1% of Coinbase’s monthly transacting users were affected. This incident is part of a series of challenges for Coinbase, as discussed in Coinbase Leaps Into Supreme Court Case in Defense of User Data Going to IRS.
The breach involved attackers bribing customer support agents in India for access. Coinbase’s Chief Security Officer, Philip Martin, revealed that the implicated agents have since been terminated. The company has promised to allocate between $180 million and $400 million for remediation and reimbursement efforts to affected users. Yet, questions linger about Coinbase’s ability to safeguard its platform against sophisticated attacks—a concern echoed by industry analysts.
Implications for the Crypto Community
The incident with Suman and the broader data breach raise important questions about the robustness of security protocols in the crypto space. While hardware wallets like the Trezor Model One are typically lauded for their security, this scam highlights a critical vulnerability: human error. Crypto enthusiasts are often reminded that their assets are only as secure as their personal practices. The challenges faced by Coinbase are not unique, as seen in the recent Movement Labs Suspends Rushi Manche Amid Coinbase Delisting, Token-Dumping Scandal.
“It’s a harsh reminder that no amount of technological advancement can completely eliminate the human element in security breaches,” said Carla Velasquez, a blockchain analyst based in San Francisco. “Education and awareness are key. Investors must remain vigilant and skeptical, especially when dealing with unsolicited communication.”
Looking Ahead: A Call for Enhanced Security
What does this mean for the future? The crypto industry, still in its relative infancy, must grapple with these security challenges as it evolves. Companies like Coinbase face mounting pressure to bolster their defenses and restore user trust. Innovations in security technology are on the horizon, but their development and implementation will take time.
For now, the onus remains on individual investors to protect themselves. As the crypto market continues to expand, personal security measures—such as verifying communications through official channels and never sharing sensitive information—are more critical than ever.
As for Ed Suman, his experience serves as a potent warning to the crypto community. While he may have lost a significant portion of his retirement savings, his story is a reminder of the importance of vigilance in the digital age. The crypto landscape is fraught with both opportunity and risk, and navigating it requires a blend of caution, knowledge, and sometimes, a bit of skepticism.
Source
This article is based on: Retired artist loses $2M in crypto to Coinbase impersonator
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
