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Alleged Coinbase hacker trolls ZachXBT with on-chain message after swapping $42.5m BTC
Crypto Trends

Alleged Coinbase hacker trolls ZachXBT with on-chain message after swapping $42.5m BTC

by admin May 22, 2025



Crypto sleuth ZachXBT revealed that the hacker accused of stealing Coinbase customer data left him a taunting message on-chain after swapping $42.5 million worth of BTC for ETH on THORChain.

In a broadcast message sent to his Investigations Telegram channel, on-chain investigator ZachXBT claimed to have received a message sent from a hacker accused of swindling more than $300 million worth of crypto assets from users. The message was sent to his on-chain Ethereum (ETH) account.

“The threat actor who stole $300M+ from Coinbase users by paying customer support just began trolling me on-chain with this message,” said ZachXBT in his Telegram message.

The message was sent from an address simply named Fake_Phishing1158790 and contained the words “L bozo” and what appeared to be a link to a YouTube video showing the viral internet short clip of former NBA athlete James Worthy smoking a cigar after a Lakers win.

“Smoking that ZachXBT pack,” one user commented under the YouTube video, indicating they were led to the video after seeing the on-chain message addressed to the crypto sleuth.

The message was linked to the alleged hacker’s recent on-chain transaction, which consisted of swapping $42.5 million worth of BTC (BTC) for ETH via THORChain.

The Coinbase user data exploit was first disclosed by the exchange on May 15. The hacker was believed to have bribed customer support staff to steal sensitive user data.

According to Coinbase, the attacker was able to get ahold of phone names, addresses, phone numbers, government-issued IDs, and other account data. The exchange claimed that the exploit only affected less than 1% of users.

After firing the customer service workers involved, the company estimated the breach could cost up to $400 million to resolve. The attackers had asked for a $20 million ransom from the crypto exchange. Coinbase refused to pay the $20 million ransom and is offering a bounty for anyone who can track down the attacker.



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May 22, 2025 0 comments
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Coinbase hacker trolls ZachXBT onchain after $42.5M THORChain swap
Crypto Trends

Coinbase hacker trolls ZachXBT onchain after $42.5M THORChain swap

by admin May 22, 2025



The hacker behind the data breach targeting Coinbase users mocked blockchain investigator ZachXBT with an onchain message following a major crypto swap.

On May 21, the hacker used Ethereum transaction input data to write “L bozo,” followed by a meme video of NBA player James Worthy smoking a cigar.

The message came after the attacker swapped about $42.5 million from Bitcoin (BTC) to Ether (ETH) via THORChain.

ZachXBT flagged the message on his Telegram channel, linking it to the same entity responsible for the Coinbase data breach affecting at least 69,400 users.

Coinbase hacker trolling ZachXBT. Source: ZachXBT.

On May 22, blockchain security firm PeckShield reported that the hacker had continued to move funds, swapping 8,697 ETH for 22 million Dai (DAI). A separate but closely linked address, which received 9,081 ETH via THORChain, also converted the assets into 23 million DAI.

Related: DOJ is investigating Coinbase data breach— Report

Coinbase hit with lawsuits after breach

The Coinbase breach, first reported in a filing with the Maine Attorney General’s office, occurred in December 2024 and was discovered on May 11. The stolen data includes names, home addresses and other personal information.

Following the disclosure, the attackers demanded a $20 million ransom in Bitcoin to prevent the release of the stolen data. Coinbase refused and instead offered a $20 million bounty for information leading to the identification of the hackers.

The company estimates a potential financial impact between $180 million and $400 million due to remediation costs and customer compensation.

Coinbase has also faced a wave of lawsuits following the revelation. At least six legal complaints were filed on May 15 and 16, with plaintiffs accusing the exchange of failing to implement adequate security measures and mishandling its response to the breach.

Related: Coinbase data leak could put users in physical danger: TechCrunch founder

THORChain under scrutiny for criminal use

The Coinbase hacker’s use of THORChain to swap $42.5 million worth of Bitcoin into Ether comes as the protocol faces growing scrutiny over its role in facilitating illicit transactions.

In March, the platform came under fire after its swap volume surged following the $1.4 billion Bybit hack. The protocol generated over $5 million in revenue after processing $5.4 billion in swap volume, with over $1 billion moved in a single day.

Blockchain security firms identified North Korea’s Lazarus Group as the main suspect, using THORChain to launder a significant portion of the stolen funds.

Source: Lookonchain

The controversy intensified when a THORChain developer, known as “Pluto,” resigned after a vote to block transactions linked to Lazarus was overturned.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story



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May 22, 2025 0 comments
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