The hacker behind the massive $300 million Coinbase data breach has publicly mocked blockchain investigator ZachXBT while executing a significant cryptocurrency conversion worth millions.
The attacker used Thorchain, a decentralized cross-chain protocol, to swap approximately $42.5 million worth of Bitcoin (BTC) to Ethereum (ETH) before proceeding to convert 8,698 ETH into $22.12 million in DAI stablecoin.
Furthermore, the hacker sent an on-chain message embedded in the Ethereum transaction data, ‘L bozo,’ wrote the hacker in the transaction’s input data field, using internet slang that combines ‘L’ (for ‘loss’) with ‘bozo’ (a term for a foolish person), essentially calling the blockchain investigator a loser. The message was also linked to a YouTube video featuring NBA legend James Worthy smoking a cigar, which was apparently intended to be a victory celebration.
Why the Coinbase Hacker Taunts ZachXBT
ZachXBT, a pseudonymous on-chain detective known for uncovering cryptocurrency frauds and tracking down stolen money, has closely monitored the hacker’s whereabouts since it was first made public.
The investigator first reported the taunting remark through the “Investigations” Telegram channel, confirming that the same person or group was responsible for the Coinbase user data theft. Last week, Coinbase disclosed the hack, which entailed a highly skilled social engineering effort in which foreign customer support representatives received payment to obtain private data belonging to around 69,461 users.
The exposed data included government-issued identification documents, names, addresses, phone numbers, masked social security numbers, and other private information that might be exploited in phishing attempts or other attacks.
The hacker threatened to sell or misuse the stolen records and sought a $20 million ransom from Coinbase after the data theft. Instead of making the payment, the bitcoin exchange offered a $20 million reward for information that would result in the offender’s arrest. Coinbase has acknowledged that the breach exposed data from 69,461 customers.
Coinbase has fired the affected staff and bolstered security measures, while the U.S. Department of Justice has opened a formal inquiry into the security incident.
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