Coinbase Hacker Suffers $1M Loss in Ethereum Trade, Raising Security Concerns

A hacker linked to a $300M Coinbase breach lost $1M in an Ethereum trade, highlighting security vulnerabilities and financial risks in the cryptocurrency market. Analysts documented the trade using on-chain analysis and pointed to potential regulatory actions or technological upgrades to prevent future breaches. The incident underscores the complexity of crypto trade tracking and the significance of monitoring large trades.

In a recent development, a hacker linked to a significant $300 million Coinbase breach has reportedly lost nearly $1 million in an Ethereum trade, highlighting the ongoing security vulnerabilities and financial risks in the cryptocurrency market. Analysts have documented the trade using on-chain analysis, and the incident underscores the complexity of tracking cryptocurrency trades and the importance of monitoring large transactions.

The hacker, identified by on-chain sleuths and analytics platforms, was involved in a massive data breach in May 2025, which resulted in losses estimated between $180 million and $400 million. The hacker's account, monitored by analysts, engaged in a capitulation event trading Ethereum (ETH) on September 13 and 15, 2025. On September 13, the address purchased 3,976 ETH, worth approximately $18.9 million at $4,756 per token. However, on September 15, the hacker sold the entire stack at a loss, resulting in a net negative of approximately $932,000 Coinbase Hacker Panic Sells ETH Bought 2 Days Ago, “Loses” Nearly $1M^[1].

The incident has raised questions about why a hacker is allowed to trade freely in the decentralized finance (DeFi) environment. While the address is limited to trading decentralized currencies like ETH and DAI on decentralized exchanges, such as CoW Protocol, these systems are built on the premise of being censorship-resistant. This means that sanctions cannot be applied to these addresses, and the only way to prevent such activities is if the funds reach centralized systems or fiat off-ramps Coinbase Hacker Panic Sells ETH Bought 2 Days Ago, “Loses” Nearly $1M^[1].

Ethereum's price has been influenced by the hacker's activities. As of September 12, 2025, ETH is trading at $4,505 per token, down 0.37% from the hacker's capitulation point. Ethereum's native token is testing a 30-day price support at these levels, which could serve as a launchpad for an upward movement if the crypto market turns bullish following the upcoming Federal Reserve's interest rate decision on September 17 Coinbase Hacker Panic Sells ETH Bought 2 Days Ago, “Loses” Nearly $1M^[1].

The incident also underscores the need for robust security measures and technological upgrades to prevent future breaches. While the hacker's loss is a significant setback, it also highlights the importance of monitoring large trades and the potential risks associated with decentralized finance. As the cryptocurrency market continues to evolve, investors and financial professionals must remain vigilant and adapt to the ever-changing landscape.