The Federal Bureau of Investigation (FBI) has said it was not able to allocate resources the theft of $165,000 worth of cryptocurrency from Coinbase because the sum was too small.
Speaking to NBC News, Philip Martin explained how he got scammed by hackers who “phished him” by changing the URL address of the website he was typing in. He ended up with a fake website instead.
Instead of double-checking the URL, Martin quickly responded to a prompt to enter his password, which granted the thieves access to his life savings, all of which had been placed on cryptocurrency.
He lost all his Ethereum holdings. Thanks to the blockchain technology which uses a “public ledger”, Martin has been able to trace where the money was moved.
However, the “dollar amount involved” is not sufficient to spark law enforcement action, the FBI has said in response to Martin’s request for help.
The FBI Los Angeles field office has urged people to be extra vigilant when becoming involved with cryptocurrencies and argued that “education is key”.
However, Martin is not convinced it’s his own fault. Coinbase argued that it’s a safe place to hold, own, buy and transfer cryptocurrencies, but this is apparently not the case the victim argued.
“These crypto exchanges don’t have any regulation that’s compelling them to be on the side of the customer and provide protection to help in these type of situations that, in my opinion, they are responsible for, of not providing enough cybersecurity on their own URL address”, he said.