A hacker linked to the Coinbase breach offloaded 26,554 ETH valued at $68M and mocked investigator ZachXBT with an insult on the blockchain.
The attacker used multiple wallets and THORChain to obfuscate ETH to DAI swaps and then repurchased ETH, hinting at tactical movements.
Coinbase strengthened security, the DOJ launched an investigation, and Cetus offered a whitehat deal after a separate $223 million attack on its protocol.
According to Spot On Chain, a sophisticated hacker linked to the recent Coinbase data breach offloaded a massive amount of Ethereum valued at over $68 million. The attacker, traced to wallet 0xb57, executed multiple ETH to DAI swaps totaling 26,554 ETH via THORChain in just 48 hours. These transactions were spread across newly created wallets, suggesting efforts to avoid detection.
8,776 ETH were sold for $23.24 million at an average price of $2,648 about 12 hours ago when Spot On Chain reported. Previously, the same entity liquidated 17,778 ETH for $45.48 million through three wallets. This raises the average price across all sales to $2,588.
Hacker Provocation on the Blockchain and Repurchase Strategy
In addition to the massive ETH sell-off, the hacker mocked blockchain investigator ZachXBT with a provocative message on the blockchain. The input data said 'L bozo', an internet insult meaning 'loser', and was linked to a video of James Worthy smoking a cigar—a seemingly celebratory act.
However, the staging didn't end there. One wallet repurchased 207.17 ETH for $536,000 shortly after the sales, hinting at a short-term trading strategy or new attempts at obfuscation. Additionally, ZachXBT confirmed through his Telegram channel that the individual behind these messages is the same person responsible for the Coinbase data theft. The breach affected 69,461 users and originated from a high-level social engineering attack.
Consequences and Repercussions in the Industry
Coinbase quickly responded by firing compromised support staff and enhancing its internal security controls. Additionally, the U.S. Department of Justice launched an active investigation into the hack. The hacker initially demanded a ransom of $20 million to not release user data. Instead, Coinbase offered a $20 million reward for information leading to an arrest.
Meanwhile, the Cetus Protocol, one of the leading decentralized exchanges on Sui, is dealing with its own crisis. The platform offered a $6 million reward for a hacker who stole $223 million. Additionally, Cetus confirmed the attacker's Ethereum wallet and issued a 'whitehat' deal offer with a deadline. The attacker may return most of the stolen ETH in exchange for immunity and a small portion of the funds.
