Coinbase Draws Security Criticism After Asking Users to Enter Seed Phrases

• Coinbase published a migration page asking users to enter wallet seed phrases.
• Security experts warn the approach could enable phishing and social engineering attacks.
• Critics say exposing seed phrases online creates serious risks for self-custodial wallets.

Coinbase is facing criticism from the security community after publishing an official page that asks users to enter their seed phrases directly into a web form. Researchers are calling it dangerous, unnecessary, and a ready-made template for scammers.

What Is Happening

The page was created to help merchants migrate funds as Coinbase merges its Commerce product with Coinbase Business before a March 31 deadline. Merchants who received Bitcoin and other crypto payments through Commerce are being directed to a withdrawal tool at a Coinbase subdomain where they are asked to input their 12-word seed phrase to cons…

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