Unbelievable Coinbase Request: Users Asked for Seed Phrases – Security Experts React

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In a twist that even the most seasoned skeptic could hardly believe, security researchers have raised their voices in alarm over a Coinbase Commerce page that brazenly demands users to input a 12-word seed phrase. Yes, you heard it right-plain text, right there for all to see!

One cannot help but chuckle at the audacity of it all. The founder of SlowMist, who amusingly chooses to go by the moniker Evilcos, took to the digital streets to warn the masses, branding this practice as not merely unsafe, but utterly ludicrous.

“I’m left scratching my head as to why Coinbase would create such a page, inviting users to surrender their mnemonic phrases like candy on Halloween. This unsafe practice is truly beyond belief… I almost thought the subdomain had been hijacked by some mischievous hacker,” he lamented, perhaps with a hint of sardonic disbelief.

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Meanwhile, blockchain sleuth ZachXBT amplified the clarion call of concern, raising an eyebrow at the situation.

“So, essentially, Coinbase has an official page live and ripe for threat actors to exploit, targeting unsuspecting Coinbase users through seed phrase social engineering? What a delightful turn of events!” he mused, voice dripping with the irony of the moment.

To add some context for those blissfully unaware, social engineering scams are the crafty art of trickery where criminals manipulate individuals into disclosing sensitive information or performing actions that jeopardize their own security. Instead of launching a full-frontal assault on technical defenses, these attackers play the psychological game, exploiting trust, urgency, fear, or authority. Quite clever, if one finds humor in the human condition.

As Coinbase embarks on its grand journey of merging Commerce with Coinbase Business-oh, how the mighty have plans!-users are being urged to move their funds, all before a rather ominous deadline of March 31, 2026. They graciously offer two choices for withdrawal. The first is a commerce withdrawal tool that promises to consolidate funds into a single transaction. According to Coinbase, this tool simplifies the arduous task of scanning a user’s Commerce addresses. How thoughtful!

The exchange champions this method as the gold standard for fund withdrawal. In a moment of sheer generosity, they suggest that users may also opt to use their seed phrase directly on the Coinbase page. Because who doesn’t love a little risk with their cryptocurrency?

“If you possess your seed phrase, feel free to import it into a compatible wallet (like Coinbase Wallet or MetaMask),” the blog reassuringly states. “For many merchants, particularly those who have received payments in Bitcoin or other UTXO-based assets, we highly recommend utilizing the Commerce withdrawal tool prior to March 31, 2026.”

As one might expect, Coinbase has yet to respond to BeInCrypto’s inquiry regarding this rather curious matter. Perhaps they are too busy crafting their next bewildering update?

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2026-03-19 08:30