The hacker behind the Coinbase user data breach mocked blockchain investigator ZachXBT through an on-chain message after making a significant cryptocurrency conversion.
On May 21, the hacker—who had previously stolen data from at least 69,400 Coinbase users—used Ethereum transaction input data to write "L bozo," accompanied by a meme video of NBA player James Worthy smoking a cigar.
This message was sent after the attacker converted approximately $42.5 million worth of Bitcoin (BTC) into Ethereum (ETH) via THORChain.
ZachXBT tagged the message on his Telegram channel, linking it to the same entity responsible for the Coinbase data breach affecting at least 69,400 users.
On May 22, blockchain security firm PeckShield reported that the hacker continued to move funds, exchanging 8,697 ETH for 22 million Dai (DAI). Another closely related address received 9,081 ETH through THORChain, also converting assets into 23 million DAI.
The Coinbase data breach was first reported in documents submitted to the Maine Attorney General's office, occurring in December 2024 and discovered on May 11. The stolen data included names, home addresses, and other personal information.
After the breach was disclosed, the attackers demanded a $20 million Bitcoin ransom to prevent the stolen data from being made public. Coinbase refused to pay the ransom and instead offered a $20 million reward for information that could identify the hacker.
The company estimates that the potential financial impact, due to repair costs and customer compensation, ranges from $180 million to $400 million.
Following the breach, Coinbase also faced a wave of lawsuits. Between May 15 and 16, at least six legal complaints were filed, with plaintiffs accusing the exchange of failing to implement adequate security measures and mishandling the response to the breach.
As the Coinbase hacker converted $42.5 million worth of Bitcoin into Ethereum using THORChain, the protocol is facing increasing scrutiny for its role in facilitating illegal transactions.
In March, the platform saw a surge in trading volume following a $1.4 billion hack at Bybit, drawing criticism. The protocol generated over $5 million in revenue after handling $5.4 billion in trading volume, with single-day transfer amounts exceeding $1 billion.
Blockchain security firms confirmed North Korea's Lazarus Group as the main suspect, having laundered a significant amount of stolen funds using THORChain.
The controversy intensified after a THORChain developer, "Pluto," resigned following a vote to overturn a decision blocking transactions related to Lazarus.
Related: Lawyer claims Coinbase data breach affects nearly 70,000 users
Original: “Coinbase hacker trolls ZachXBT after completing $42.5 million conversion through THORChain”
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