The Coinbase data breach has shaken the crypto industry, with the hacker swapping $42.5 million in Bitcoin to Ethereum. Blockchain investigator ZachXBT confirmed the conversion was done through Thorchain, a platform enabling cross-chain transactions outside centralized oversight.
This incident began when the hacker bribed a Coinbase customer service representative to steal details of nearly 97,000 users. Authorities believe the breach occurred from within, allowing the attacker to access sensitive user data without alerting internal security teams.
Coinbase quickly responded by refusing to meet the hacker’s $20 million ransom demand and publicly announced a bounty offer. However, the company is offering a reward to anyone who can help identify or locate the attacker involved in this high-profile theft.
After acquiring the stolen money, the attacker converted the Bitcoin into Ethereum through Thorchain, bypassing traditional tracing software. Ethereum’s decentralized system increased the complexity of laundering since there existed no central agency to freeze or intercept transactions.
Coinbase reward unlikely To catch hacker
However, the hackers’ Ethereum activities are being tracked by experts as the funds are distributed in wallets, possibly as a means of evading detection. The attacker even made a post on-chain taunting the authorities. It showed a level of audacity rarely seen in computer crimes.
Analysts like ZachXBT are monitoring wallet traffic as they highlight increasing concern about the misuse of Ethereum in cybercrime. The application of crosschain bridges like Thorchain makes it harder to block fund flows or apply real-time restrictions.
Ethereum continues expanding in popularity, boasting a market cap of $321.11 billion and a daily trading volume of $36.33 billion. Its function in decentralized finance and smart contracts make it a central figure in the cryptocurrency market, but it also means that this event exposes it to security issues.
Nonetheless, Coinbase’s $20 million reward has generated debate, and most believe it will not result in the capture of the hacker. Experts suspect the perpetrator will evade capture by using advanced tactics and decentralized network systems.
