Coinbase Hackers Launder $42.5M Stolen Crypto via THORChain Using BTC, ETH, and DAI Swaps
Hackers responsible for a major Coinbase security breach earlier this month have begun laundering over $42.5 million in stolen Bitcoin by swapping it for Ethereum and DAI using the decentralized protocol THORChain. Investigations by ZachXBT and PeckShield revealed the hackers first traded stolen BTC for significant amounts of ETH, then swapped the ETH for millions in DAI stablecoins. Associated wallets conducted further ETH-to-DAI swaps, moving funds across multiple addresses. This laundering activity signals ongoing efforts to evade detection and move illicit assets via decentralized crypto protocols. Coinbase confirmed the breach was enabled by bribed overseas support agents, resulting in the leak of personal data from over 69,000 users. The attackers demanded $20 million in BTC ransom, which was refused. Remediation costs for Coinbase are expected to reach up to $400 million. This incident highlights rising security risks for centralized exchanges, increased regulatory scrutiny, and the trend of using decentralized platforms for laundering stolen funds. Crypto traders should monitor large blockchain swaps, particularly ETH-to-DAI, and be aware of potential short-term volatility and heightened risk sentiment across ETH and DAI markets.
Bearish
The laundering of $42.5 million in stolen crypto assets (BTC, ETH, DAI) via THORChain after the Coinbase security breach signals heightened risk for ETH and DAI. Large, rapid swaps typically increase market volatility and create selling pressure, especially on the assets being exchanged. The sizable movement of illicit ETH and DAI could disrupt liquidity pools or cause temporary price swings. At the same time, the incident raises fears over crypto exchange security and stricter regulatory oversight, both of which tend to dampen market sentiment for affected tokens. Historically, news of hacks and laundering often triggers a short- to mid-term decline in price or trading activity for the related cryptocurrencies due to uncertainty and fear of increased enforcement.