The hacker behind the information breach focusing on Coinbase customers mocked blockchain investigator ZachXBT with an onchain message following a significant crypto swap.

On Might 21, the hacker used Ethereum transaction enter knowledge to write down “L bozo,” adopted by a meme video of NBA participant James Worthy smoking a cigar.

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

ZachXBT flagged the message on his Telegram channel, linking it to the identical entity liable for the Coinbase knowledge breach affecting a minimum of 69,400 customers.

On Might 22, blockchain safety agency PeckShield reported that the hacker had continued to maneuver funds, swapping 8,697 ETH for 22 million Dai (DAI). A separate however carefully linked tackle, which obtained 9,081 ETH through THORChain, additionally transformed the property into 23 million DAI.

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Coinbase hit with lawsuits after breach

The Coinbase breach, first reported in a submitting with the Maine Legal professional Basic’s workplace, occurred in December 2024 and was found on Might 11. The stolen knowledge consists of names, house addresses and different private data.

Following the disclosure, the attackers demanded a $20 million ransom in Bitcoin to stop the discharge of the stolen knowledge. Coinbase refused and as a substitute supplied a $20 million bounty for data resulting in the identification of the hackers.

The corporate estimates a possible monetary affect between $180 million and $400 million as a result of remediation prices and buyer compensation.

Coinbase has additionally confronted a wave of lawsuits following the revelation. At the very least six authorized complaints had been filed on Might 15 and 16, with plaintiffs accusing the trade of failing to implement satisfactory safety measures and mishandling its response to the breach.

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THORChain underneath scrutiny for felony use

The Coinbase hacker’s use of THORChain to swap $42.5 million value of Bitcoin into Ether comes because the protocol faces rising scrutiny over its position in facilitating illicit transactions.

In March, the platform got here underneath hearth after its swap quantity surged following the $1.4 billion Bybit hack. The protocol generated over $5 million in income after processing $5.4 billion in swap quantity, with over $1 billion moved in a single day.

Blockchain safety companies recognized North Korea’s Lazarus Group as the primary suspect, utilizing THORChain to launder a good portion of the stolen funds.

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

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