Prominent blockchain security researcher and on-chain analyst @zachxbt launched a scathing public attack on Coinbase CEO Brian Armstrong, accusing the exchange of systemic security lapses that have repeatedly exposed users to scams and theft. The viral thread began with a meme caption: “Bring more lambs to the slaughter” — implying Coinbase’s business model profits from naive retail users while failing to protect them adequately.
ZachXBT highlighted a string of recent high-profile incidents:
- Multiple users reporting fake support scams draining millions (including the $2M+ case exposed in late December 2025).
- Persistent phishing campaigns using lookalike domains and spoofed emails that Coinbase allegedly does little to proactively block or educate against.
- Ongoing complaints about slow or denied account recoveries after hacks, with victims claiming Coinbase prioritizes compliance over user restitution.
- Broader criticism of Coinbase’s custodial model, where users lose self-custody control and become easy targets for social engineering.
The researcher argued that despite Coinbase’s position as a regulated, publicly traded giant, its security practices lag behind self-custodial solutions and competitors like Kraken or Binance in user education and proactive threat mitigation. ZachXBT called for Armstrong to address the issues directly, stating: “Stop treating users like lambs for slaughter. Fix the security holes, educate your base, and stop pretending everything is fine.”
Coinbase has not yet issued an official response, though Armstrong has previously emphasized that the company never asks for seed phrases or private keys, and victims should always use official channels. The exchange continues to promote its regulated status and insurance programs for hot wallets, but critics say these fall short against sophisticated social engineering.
The thread exploded across X on January 3, 2026, with thousands of reposts, victim stories, security tips, and heated arguments circulating widely, fueling debates on exchange responsibility, custodial vs. self-custody risks, user education, and Coinbase’s role in retail adoption among traders, security experts, and retail investors.
#Crypto dominates global discussions with massive volume.
#Coinbase surges with ZachXBT security critique news.
#BrianArmstrong gains traction in CEO accountability talks.
#CryptoNews is buzzing with exchange security updates.
#Blockchain thrives in scam prevention and custody debates.
#Bitcoin remains a top trend with huge activity.
#Security continues strong in phishing and user protection conversations.
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What’s your take — is ZachXBT’s “bring more lambs” jab fair criticism of Coinbase’s security track record, or is it unfair given the scale of social engineering attacks across the entire industry? Drop your thoughts below 👇