Exclusive Investigation by The Daily HodlThe Thief Behind the Massive Coinbase Exploit: A Tale of Crypto Thievery and Digital Anarchy
The thief behind the massive Coinbase exploit earlier this month has begun swapping their stolen crypto. On Wednesday, pseudonymous on-chain investigator ZachXBT noted on Telegram that the exploiter had swapped $42.5+ million worth of Bitcoin (BTC) into Ethereum (ETH) via the decentralized liquidity protocol THORChain (RUNE). According to ZachXBT, this move marks a significant milestone in the thief's attempt to launder their ill-gotten gains. The exploit, which occurred on Coinbase earlier this month, resulted in the theft of sensitive customer data from nearly 70,000 users.The Exploiter's First Move: Swapping Stolen Crypto on THORChain
But it seems that the thief behind the exploit wasn't done yet. Pseudonymous on-chain investigator ZachXBT reported that the exploiter had trolled him with an on-chain message, saying "L bozo" and linking to a YouTube video of former NBA star James Worthy smoking a cigar. This move is a classic example of digital anarchy, where the thief attempts to distract and humiliate their would-be pursuers. However, ZachXBT remains undeterred, continuing to track the movements of the exploiter's cryptocurrency.The Exploiter's Parting Shot: Trolling ZachXBT with a James Worthy Cigar Video
According to blockchain security firm PeckShield, the exploiter later swapped 8,697 ETH for 22 million of the stablecoin Dai (DAI). Additionally, a different address that is "highly relevant to the threat actor" received 9,081 ETH from THORChain and then swapped it for 23 million DAI. PeckShield also noted that this relevant address later received another 8,569 ETH (worth approximately $22.4 million) from THORChain. It appears that the exploiter is systematically working to launder their stolen cryptocurrency through various channels.More Swaps: The Exploiter's Path to Laundering Crypto
Coinbase has confirmed that it was the victim of a massive exploit earlier this month, resulting in the theft of sensitive customer data from nearly 70,000 users. The breach has left Coinbase facing significant remediation costs and voluntary customer reimbursements. The company reported that hackers had bribed a small group of overseas customer support agents to copy the data of less than 1% of the firm's monthly transacting users. However, this brazen move has only added fuel to the fire, with Coinbase now facing increased scrutiny from regulatory bodies and concerned citizens.Coinbase's Response: A Breach of Epic Proportions
According to a recent filing with the Maine Attorney General's Office, Coinbase is estimated to pay between $180 million to $400 million in remediation costs and voluntary customer reimbursements. The exact figure remains unclear, but one thing is certain: this will be one of the most expensive breaches in cryptocurrency history. The breach has also raised concerns about the security and accountability of major exchanges like Coinbase. As the crypto landscape continues to evolve, it's essential for investors and users to remain vigilant and informed about emerging threats and risks.The Fallout: Estimated Costs Mount to $400 Million
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