tl;dr
The threat actor responsible for major thefts from Coinbase users has publicly mocked prominent on-chain investigator ZachXBT via an Ethereum transaction message. ZachXBT identified the hacker as linked to a Coinbase data breach exposing over 69,400 users. After Coinbase refused a $20 million ransom...
The threat actor responsible for massive thefts from Coinbase users openly taunted prominent on-chain investigator ZachXBT through an Ethereum transaction. Following the movement of millions in cryptocurrency, the hacker used the transaction’s input data message feature to mock ZachXBT with slang and a meme video, calling him a "loser" or "L bozo."
Coinbase disclosed a December 2022 data breach affecting over 69,400 users, which was uncovered in May 2023. The breach led to a $20 million ransom demand in Bitcoin, which Coinbase refused, instead offering the same amount as a bounty for information leading to the arrest of the attackers. The hacker subsequently moved approximately $42.5 million from Bitcoin to Ethereum via Thorchain and transferred an additional 8,698 ETH (about $22.6 million) shortly after taunting ZachXBT.
ZachXBT, a well-known crypto sleuth recognized for exposing scams and hacks, identified the hacker as linked to the Coinbase breach. Despite being targeted, he retains strong support from the crypto community, which notably backed him with over $1 million in donations during a 2023 defamation lawsuit. ZachXBT also serves as an incident response advisor at Paradigm, a research-driven crypto investment firm.
Coinbase now faces significant remediation costs estimated between $180 million and $400 million. The public taunts and large cryptocurrency movements underscore the audacity of the threat actor and highlight ongoing security challenges within cryptocurrency ecosystems.