Hacker Bypasses Coinbase’s AML Detection in a $15.9 million Theft

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As a seasoned researcher with years of experience in the cryptocurrency realm, I find ZachXBT’s latest findings utterly intriguing. The $15.9 million heist on Coinbase Commerce is a stark reminder of the ever-evolving landscape of cybercrime. The fact that such a large-scale theft managed to slip through Coinbase’s AML monitoring is concerning, especially given their past record of compliance violations.

ZachXBT recently identified a $15.9 million theft targeting a vendor on Coinbase Commerce. Coinbase’s AML did not detect the suspicious activity, and it is currently unclear how the attack occurred.

Information from blockchain transactions and boasts on the suspect’s social media could potentially unmask him, although the inquiry is still underway. So far, no report has been made by the victim, which makes identifying the individual more challenging.

ZachXBT Finds Coinbase Commerce Theft

ZachXBT, a well-known investigator in the cryptocurrency world, shared updates about his ongoing probe through social media posts. According to him, an initial loss of funds took place on April 21st, involving over 1700 dubious transactions of USDC (a stablecoin).

The culprit swiftly bridged stolen USDC worth over $15.9 million to Polygon and then Ethereum. Afterward, this was split into three wallets, and the majority remained dormant.

The criminal has kept his true identity a secret but nevertheless began flexing luxury purchases under the username “Excite.” His face was partially identifiable in some photos, and metadata suggests he may be in Denmark.

ZachXBT mentioned the possibility of discovering Excite’s true identity, yet he posed a crucial query: by what means did this individual manage to penetrate Coinbase’s protective measures?

In this case, the victim’s identity hasn’t been revealed yet, but there’s a solid clue that could help bring the culprit to justice. Since the money was divided among three parties, it’s likely others were involved. One point of interest is why Coinbase’s anti-money laundering system didn’t detect this suspicious activity within 16 hours, he commented.

It’s worth noting that Coinbase has had issues with AML (Anti-Money Laundering) monitoring in the past. Last year, they were fined $50 million for breaking compliance laws. However, some critics argue that the company has been overly cautious in restricting legitimate accounts, yet it failed to detect this significant crime.

Last month, ZachXBT investigated another scammer impersonating Coinbase Support. Earlier in February, Coinbase Commerce removed Bitcoin payments due to “operational hurdles.” But clearly, the platform needs to shore up potential problems.

Unfortunately, the individual involved hasn’t shared details yet, leaving us with limited knowledge beyond their role as a merchant on Coinbase Commerce. Further inquiry might uncover additional facts.

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2024-12-10 22:57