Crypto Thief Trolls Coinbase, Taunts Investigators & Drains Millions — Who Said Crime Doesn’t Pay?

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Crypto Thief Trolls Coinbase, Taunts Investigators & Drains Millions — Who Said Crime Doesn’t Pay?

Oh, the sweet smell of digital chaos! The mastermind behind a massive Coinbase data breach has decided to elevate their trolling game, chuckling at blockchain sleuth ZachXBT while slyly laundering millions in stolen crypto like some sort of digital Robin Hood—if Robin Hood had a dark sense of humor and a flair for showboating.

Hacker leaves a public blockchain insult for ZachXBT

Hacker Leaves Public Blockchain Insult for ZachXBT

In what might be the worst case of online trash-talking since your last family WhatsApp argument, the hacker sent an Ethereum transaction saying “L bozo” — a charming blend of ‘loser’ and ‘fool’ — on May 22. To truly make it memorable, they linked a meme of NBA legend James Worthy puffing on a cigar, because what’s better than roasting your enemies with smoke and memes?

The whole stunt was spotted by ZachXBT in his Telegram detective agency, noting that this clown—or team of clowns—was also the same shady entity siphoning Coinbase’s user data since December 2023. Classic villainy, really.

$42.5M Token Swap

$42.5M Token Swap Tracked On-Chain

Right after flashing their digital middle finger, our hacker hero went all-in on a crypto ski slope, swapping nearly $42.5 million of Bitcoin into Ethereum using Thorchain—because who needs stability when you can just turn your stolen coins into shiny new ones? Blockchain detectives found a wallet with a lovely name: “Fake_Phishing1158790” (a real work of art in creativity).

Within an hour of their taunt, they moved an eye-watering 8,698 ETH—worth about $22.6 million—and then liquidated it into DAI, a dollar-pegged stablecoin, bringing home a cool $22.12 million. Analysts kept a wary eye, probably sipping coffee and muttering, “This guy’s on a roll.”

Coinbase User Data Breach

Coinbase Breach Fallout and Regulatory Scrutiny

Just days after the daring digital dance, Coinbase finally admitted to the breach—affecting around 69,400 users. While passwords stayed safe (phew!), sensitive data like IDs and emails were stolen, making everyone’s inbox a little more anxious. The hacker, sporting a flair for drama, demanded a $20 million ransom, threatening to unleash their stolen data for scams galore—because nothing screams “trust” like a cyber bandit with a begging bowl.

Coinbase said “no way” and instead threw a $20 million bounty out into the universe, hoping the cyber James Bond might slip up. Spoiler alert: It’s probably a long shot.

Coinbase security measures

Measures Taken Following Breach

In the aftermath, Coinbase is pulling out all the stops—locking down security like a bank vault, boosting background checks, and launching a snazzy new U.S. support hub. The whole fiasco could cost them around $400 million, which is basically the Bitcoin of corporate disasters.

Meanwhile, Uncle Sam’s finest are investigating—because why let cybercriminals have all the fun? Federal agents are poking around, trying to figure out if regulatory issues helped this guy slip through the cracks or if it’s just another day in the wild west of crypto.

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2025-05-22 18:14