Coinbase Breach: Crypto Thief Launders Millions through THORChain
Date: May 23, 2025
By: Olumide Adesina, Financial Market Writer
A recent data breach at Coinbase has attracted significant attention, not only for its scale but also for the audacious actions of the hacker involved. Following the breach that compromised the data of approximately 69,400 users, the perpetrator has been actively laundering millions of dollars in stolen cryptocurrency while mocking those attempting to trace the stolen funds.
Details of the Breach
The security incident at Coinbase that became public in May 2025 had roots in a campaign that reportedly began in December 2024. Due to a delayed detection, many users’ sensitive information was exposed, necessitating urgent measures to safeguard the impacted accounts.
Laundering Operations
In a recent maneuver, the hacker reportedly converted 8,697 ETH (Ethereum) into 22 million DAI, a stablecoin pegged to the US dollar. To further obfuscate the origin of these funds, the hacker made additional transactions that transformed these assets into a total of $23 million in DAI, utilizing a different address that is suspected to be linked to the same overall operation. Most of these transactions were facilitated through THORChain, indicating a sophisticated understanding of cross-chain asset management.
Taunting Blockchain Detectives
Adding a layer of insult to injury, the hacker has been openly deriding blockchain investigators while executing these transactions. In one notable incident, the hacker sent a message that included a meme video link to ZachXBT, a well-known cryptocurrency investigator. The message, which contained the phrase “L bozo,” was accompanied by a clip featuring NBA legend James Worthy smoking a cigar, showcasing a blatant disregard for the seriousness of their actions.
ZachXBT confirmed on his Telegram channel that blockchain evidence links the hacker to the organization responsible for the Coinbase breach, emphasizing the calculated nature of the breach and subsequent laundering attempts.
The Wider Impact
The breach has raised concerns beyond individual user safety, spurring discussions about the need for enhanced cybersecurity measures within cryptocurrency exchanges. It also shines a light on the challenges faced by investigators in tracking and recovering stolen funds in a decentralized financial landscape.
As investigations continue, the incident underscores the crucial need for users to remain vigilant, utilize strong security practices, and monitor their accounts for any suspicious activity.
Conclusion
The Coinbase hack serves as a stark reminder of the vulnerabilities present in the cryptocurrency landscape and the lengths to which cybercriminals will go to exploit them. As the investigation unfolds, the hope remains that authorities can track down the culprit and implement stronger security protocols to prevent future breaches.
For more updates on the evolving situation, stay tuned.
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