Coinbase Hacker Trolls Crypto Sleuth ZachXBT After $42 Million Bitcoin Heist, Sparks Industry Outrage

The hacker behind a massive data breach affecting tens of thousands of Coinbase users has taunted one of the crypto industry’s top investigators, ZachXBT, with a meme—and a blockchain trail worth over $42 million in stolen crypto. The mocking message came through an Ethereum blockchain transaction, using input data to send a brief yet brazen insult: “L bozo.” Attached was a link to a YouTube clip of NBA legend James Worthy smoking a cigar—an apparent dig aimed squarely at ZachXBT.

Known for tracking down crypto scammers and exposing rug pulls, ZachXBT revealed the trolling message in a post on his Telegram channel, “Investigations.” The transaction occurred shortly after the hacker had swapped $42.5 million in Bitcoin to Ethereum using THORChain, a decentralized cross-chain swapping protocol.

Coinbase Data Breach Exposes Nearly 70,000 Users

The Bitcoin hack taunt follows Coinbase’s admission that a December 2024 data breach compromised the sensitive information of 69,461 users, including names, addresses, phone numbers, emails, and, in some cases, government IDs. The exchange reported the breach to the Maine Attorney General’s Office, confirming that overseas customer service agents were bribed to hand over access.

The breach only came to light on May 11, when attackers reportedly demanded a $20 million Bitcoin ransom to prevent the release of stolen data. Coinbase refused to pay, instead offering the same amount as a bounty for information leading to the hacker’s arrest.

Crypto Community Reacts: Is This a Flex or a Threat?

As more wallet activity unfolds, the address tied to the hacker, labelled “Fake_Phishing1158790” on Etherscan, has already moved 8,698 ETH, worth $22.6 million, since the troll message was posted. It’s a brazen show of confidence that has rattled crypto watchdogs.

ZachXBT, who rose to prominence for uncovering multi-million dollar frauds and scam tokens, is often called the crypto detective. He’s no stranger to drama, facing a defamation lawsuit in 2023 that triggered over $1 million in donations from supporters, including Binance’s CZ and Tron’s Justin Sun.

Now serving as an incident response advisor for Paradigm, a leading crypto investment firm, ZachXBT finds himself once again in the hacker’s crosshairs.

Fallout for Coinbase: Legal, Financial & Reputational Risks Mount

Coinbase’s refusal to meet the hacker’s ransom demand could cost the company between $180 million and $400 million in damages, including legal fees, user compensation, and system overhauls.

Venture capitalist and TechCrunch founder Michael Arrington issued a chilling warning, claiming the breach could “lead to people dying” due to the rise in crypto-related kidnappings and stalking of high-net-worth individuals.

As the hacker continues to move millions in crypto while mocking security efforts, many are calling for stricter KYC regulations, criminal penalties for negligence, and better exchange accountability.