Coinbase Hacker Launders $42M After Major Breach

A hacker responsible for the Coinbase data breach laundered over $42 million in stolen cryptocurrency using protocols such as THORChain, converting Bitcoin to Ethereum and stablecoins like DAI while publicly taunting blockchain investigator ZachXBT. The breach began in December 2024 but was only discovered in May 2025, exposing the personal data—including full identities, account balances, and transaction histories—of at least 69,400 users. After Coinbase refused a $20 million ransom, the company offered a $20 million bounty for information leading to the hacker’s identification. Coinbase now faces multiple lawsuits alleging inadequate security and mishandling of the incident, with estimated remediation costs between $180 million and $400 million. The event has intensified scrutiny on protocols like THORChain for enabling illicit fund movements and highlighted the risks of social engineering attacks in the crypto sector. U.S. authorities, including the Department of Justice, have opened investigations, and Coinbase has responded by firing implicated employees and boosting internal security.