Coinbase Hacker Taunts ZachXBT After $42.5M Bitcoin Theft

In one of the boldest crypto moves of 2025, the Coinbase hacker taunts ZachXBT after laundering a staggering $42.5 million worth of Bitcoin. The hacker, believed to be behind a sophisticated phishing scam, sent a chilling on-chain message mocking the well-known blockchain investigator. This isn’t just a headline—this event raises serious questions about user safety, centralized exchange vulnerabilities, and the growing complexity of crypto scams in 2025.

What Is the Coinbase hacker taunts ZachXBT About?

In March 2025, a Coinbase user lost 400.099 BTC—valued at $34.9 million at the time—in a Coinbase phishing scam. Soon after, similar attacks brought the total user losses to over $46 million in the same month alone.

But what makes this story even more alarming? The hacker didn’t just disappear. Instead, they sent an on-chain message directly to ZachXBT, a respected blockchain sleuth known for unmasking cybercriminals. This act of defiance wasn’t just personal—it was symbolic. It showcased a growing trend where cybercriminals no longer fear accountability.

Why the Coinbase Hacker Taunt Matters in 2025

In today’s crypto world, security breaches are becoming dangerously common—and more sophisticated.

Between December 2024 and January 2025, Coinbase users reportedly lost at least $65 million to phishing scams alone. According to ZachXBT’s latest research, social engineering attacks have cost Coinbase users over $300 million annually.

This public taunt highlights:

• The ineffectiveness of traditional exchange security against human-targeted attacks.

• The brazen confidence cybercriminals now have due to decentralized laundering tools.

• A worrying lack of urgency from centralized platforms to adapt and respond.

Top Insights from the $42.5M Bitcoin Theft

How the Hack Was Executed

The attacker used:

• Spoofed Coinbase login pages

• Fake customer support channels

• SMS phishing campaigns

After tricking the user into handing over sensitive data, the attacker swiftly moved the funds.

Laundering via Thorchain and Chainflip

To cover their tracks, the hacker laundered the stolen Bitcoin via:

• Thorchain — a decentralized cross-chain swap protocol.

• Chainflip — an emerging platform used to convert assets across chains.

They converted BTC into ETH and DAI, split it into multiple wallets, and disappeared into the crypto fog.

The On-Chain Message to ZachXBT

As a final insult, the hacker embedded a direct message to ZachXBT in a blockchain transaction. The message taunted his efforts, claiming they’d never be caught—an audacious move showcasing the limits of even the best crypto sleuths.

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What to Watch Next: How to Stay Safe and Secure

As these threats evolve, here’s what both exchanges and users can do:

• Enhanced Verification: Exchanges should require optional phone number checks even for users using 2FA or security keys.

• Restricted Accounts: New or elderly users should have limited withdrawal settings to prevent full liquidations.

• User Education: Platforms must regularly educate their users with email alerts, security blogs, and in-app warnings.

• Data Broker Crackdown: Legal action against data vendors (like TransUnion) who may be unknowingly supplying hacker data.

The Coinbase hacker taunts ZachXBT saga isn’t just another crypto headline—it’s a wake-up call.

As crypto adoption grows, so do the risks. This incident reflects the urgent need for better infrastructure, transparency, and user awareness. While platforms like Coinbase face criticism for their delayed responses, the real power to avoid scams lies with informed and vigilant users.

It’s time to take control of your security before the next taunt hits the chain.

Frequently Asked Questions:

1. What happened in the $42.5 million Coinbase Bitcoin hack?
   A Coinbase user lost 400.099 BTC in March 2025 due to a phishing attack, with the hacker laundering funds via Thorchain and Chainflip.

2. Who is ZachXBT and why did the hacker target him with an on-chain message?
   ZachXBT is a prominent blockchain investigator known for exposing scams. The hacker mocked him through an on-chain message to flaunt evasion.

3. How did the Coinbase hacker launder the stolen Bitcoin?
   The attacker converted the stolen BTC into ETH and DAI using decentralized platforms like Thorchain and Chainflip, dispersing them across multiple wallets.

4. How much have Coinbase users lost to scams recently?
   Coinbase users reportedly lost over $65 million between Dec 2024 and Jan 2025, with annual losses from phishing and scams exceeding $300 million.

5. What steps should exchanges take to protect users from such hacks?
   Security experts recommend stricter user verification, withdrawal limits for new users, proactive alerts, and legal actions against data brokers.