Coinbase Hacker Taunts Crypto Sleuth ZachXBT After Moving $42.5M in Bitcoin

In a bold twist, the threat actor behind the massive Coinbase data breach has re-emerged on the blockchain radar. The hacker left a mocking message for the well-known crypto sleuth ZachXBT after moving roughly $42.5 million in stolen Bitcoin.

ZachXBT revealed the taunting message on the Telegram channel Investigations. The hacker sent the message “L bozo” via an Ethereum transaction Wednesday evening, using the blockchain’s input data field. This slang is interpreted as a “loser” or someone incompetent taking the “L” which stands for “loss.” The message was followed by a link to a YouTube meme video showing NBA legend James Worthy smoking a cigar.

Hacker Moves $42.5M in BTC Through Thorchain

The hacker swapped the stolen BTC for Ethereum using the decentralized exchange (DEX) Thorchain. The platform is a cross-chain DEX that allows for anonymous swapping between assets without relying on traditional bridges or KYC processes.

This malicious actor had previously bribed a customer service agent to obtain the personal data of nearly 97,000 Coinbase users. But the hacker did not stop their crypto heist after the exploitation. According to the exchange, they demanded a $20 million ransom in exchange for not leaking or exploiting the stolen data. Coinbase refused to comply and instead launched a full investigation. The exchange also offered a $20 million bounty to anyone who could help identify the hacker. 

Following the ugly incident, ZachXBT posted detailed findings about the breach. He exposed the attacker’s moves, shared wallet addresses, and showed how the hacker used decentralized tools to hide their tracks.

Hacker Trolls ZachXBT 

From the hacker’s message to him, it appears that they did not appreciate ZachXBT’s attention. This could be why they taunted the investigator’s efforts to trace the funds, implying that they are still several steps ahead.

ZachXBT is a pseudonymous blockchain investigator renowned for exposing scams, hacks, and fraudulent activities within the cryptocurrency and NFT sectors. Before Coinbase revealed this attack, the investigator had earlier detailed how the exchange users lost over $46 million to suspected thefts. 

In a related development, the United States Department of Justice (DOJ) has launched a criminal investigation into the Coinbase breach. The authorities aim to uncover how malicious actors gained unauthorized access by working with offshore support staff.

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