The notorious figure behind the $300 million Coinbase hack has resurfaced with a bold new move. This time, the attacker executed a massive $42.5 million swap from Bitcoin (BTC ($90,299.00)) to Ethereum (ETH ($3,120.78)) using Thorchain, a decentralised cross-chain protocol. Thorchain’s permissionless design allowed the hacker to exchange assets without intermediaries, further evading traditional tracking mechanisms.

The transaction quickly drew attention not just for its scale, but also for the taunting message that followed. After completing the swap, the hacker embedded a message into an Ethereum transaction, mocking one of the crypto industry’s most respected on-chain investigators, ZachXBT.

Hacker Sends Mocking Message to ZachXBT

Shortly after completing the BTC-to-ETH swap, the hacker sent an Ethereum transaction with a provocative on-chain message aimed at ZachXBT, a blockchain investigator renowned for exposing scams and tracking illicit crypto movements.

The message included the slang phrase “L bozo”, shorthand for calling someone a “loser,” and a link to a YouTube meme video of NBA legend James Worthy smoking a cigar—a clear display of arrogance. ZachXBT confirmed the attacker’s identity and motives in the Investigations Telegram channel, identifying them as the same actor responsible for the Coinbase user data breach.

This public taunt reveals the hacker’s confidence and suggests they’re actively monitoring the crypto community’s response.

8,698 ETH Exchanged for $22.12 Million in DAI ($1.00)

Adding another layer to the unfolding drama, the attacker soon swapped 8,698 ETH for $22.12 million in DAI, a U.S. dollar-pegged stablecoin. This deliberate move helped the hacker lock in profits while adding complexity to their laundering strategy.

These rapid conversions, first from BTC to ETH, then ETH to DAI, demonstrate how cybercriminals exploit DeFi protocols to obfuscate their tracks. Despite growing regulatory scrutiny and enhanced blockchain analytics, this attacker managed to transfer tens of millions across chains without intervention.

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DeFi Security Under the Spotlight

The hacker’s actions have reignited concerns across the crypto industry. ZachXBT’s investigations and the hacker’s direct taunt sparked widespread conversations about the limits of DeFi enforcement, especially when protocols lack centralized control.

Many in the community expressed alarm at how easily bad actors can manipulate decentralised systems to conceal illicit funds. Once assets are swapped, bridged, or moved across permissionless platforms like Thorchain, they become nearly impossible to trace or recover.

This incident underscores the growing security gap between DeFi innovation and the tools available to police it. While surveillance tools have improved, they still fall short in stopping real-time asset movements of this magnitude.

A Wake-Up Call for Blockchain Security

The Coinbase hacker’s brazen behaviour and public interaction with ZachXBT demonstrate more than technical skill. They reflect a growing trend of cybercriminals treating the crypto landscape as a playground with little consequence.

This event should serve as a wake-up call for developers, regulators, and users alike. There’s a clear and urgent need for improved cross-chain monitoring, smarter on-chain analytics, and layered DeFi defences that don’t compromise decentralisation but still offer safety and accountability.

The post Coinbase Hacker Resurfaces: Converts $42.5M in BTC, Cashes Out ETH, and Taunts ZachXBT Onchain appeared first on FXcrypto News.