Unidentified hackers have transferred approximately $42 million in Bitcoin (BTC) and taunted blockchain sleuth ZachXBT by leaving a dismissive on-chain message. The criminals subsequently swapped around $42.5 million from BTC into Ether (ETH) via Thorchain, later converting a significant portion of the ETH into DAI stablecoins. This high-profile incident follows a prior Coinbase breach in December 2024, where a hacker bribed employee agents to access sensitive data of nearly 97,000 users. The stolen information included government-issued IDs and email addresses, though passwords and private keys were unaffected.
The hacker's taunt, "L bozo," was etched onto the blockchain as a clear insult toward ZachXBT, who is noted for his role in uncovering major crypto thefts. The breach has incited uproar in the crypto community, highlighting significant vulnerabilities in digital asset security and the persistent threat of social engineering scams targeting customer service staff.
Coinbase has publicly refused a $20 million ransom demand and instead offered a $20 million bounty to capture the hacker. The company has since terminated the compromised employees and announced plans to strengthen insider-threat safeguards, including enhanced employee screening and real-time transaction monitoring. Furthermore, the U.S. Department of Justice has opened a formal investigation into the security lapse.
In response, crypto exchanges and analysts are increasing vigilance with more rigorous on-chain surveillance and compliance checks. Past incidents like the Bybit and Stake.com hacks provide a backdrop of sustained threats from advanced hacking tactics. Industry experts predict tightened regulatory oversight and improved security protocols to fortify defenses against future breaches.