Ethereum News Today: Coinbase Hacker Profits 40% on Ethereum Purchases Amid Rising Prices

In July, a hacker responsible for one of the largest data breaches in Coinbase’s history made significant Ethereum (ETH) purchases, causing over $300 million in damages. The blockchain analytics platform Lookonchain reported that the wallet labeled as the Coinbase hacker acquired 649.62 ETH for $2.31 million within just 12 hours at an average price of $3,561 per ETH. Earlier that month, the same wallet had bought 4,863 ETH for $12.55 million at an average price of $2,581 each. Following a sale of 26,762 ETH in May for $69.25 million, the hacker began accumulating Ethereum aggressively amid the rising prices.

With these July purchases, the hacker’s wallet captured significant profit potential as ETH’s price surpassed $3,700 for the first time this year. The portfolio, built at an average cost of $2,600, turned into millions of dollars in unrealized gains with a 40% increase in Ethereum’s value over the past month. Blockchain data reveals that most transactions were conducted via the CoW Protocol, enabling the hacker to reduce visibility and minimize price slippage. The strategy has been interpreted as a calculated shift back to Ethereum once market trends reversed after large May sales. This rapid accumulation aligns with bullish expectations for ETH, while blockchain investigators continue to monitor wallet movements closely. The timing for realizing total balances or potential new purchases remains uncertain.

The attack started with Coinbase’s overseas call center employees being bribed to leak customer data. The hacker couldn’t directly access passwords or crypto balances, yet the exposure of sensitive information led to inquiries and incurred costs for improvements. Even though the impact on users was minimal, this incident cast doubt on the platform’s security practices. Coinbase refused to negotiate with the hacker, promising to fully compensate affected customers. However, the movements of funds following the hack suggest that the leaked data was indirectly converted into profit. Through Ethereum-focused maneuvers, the hacker broadens their operational scope, exploiting blockchain privacy techniques and taking advantage of the rising market.

This incident highlights the evolving tactics of hackers in the cryptocurrency space, who are increasingly leveraging blockchain privacy techniques to evade detection and maximize profits. The hacker’s aggressive accumulation of Ethereum, despite the significant damages caused, underscores the potential for substantial gains in the volatile cryptocurrency market. The use of the CoW Protocol to minimize price slippage and reduce visibility further demonstrates the hacker’s strategic approach to managing their Ethereum holdings.

The hacker’s actions also raise questions about the security measures in place at major cryptocurrency exchanges like Coinbase. The breach, which involved bribery of overseas call center employees, highlights the vulnerabilities that can exist within an organization’s human resources and security protocols. Coinbase’s refusal to negotiate with the hacker and its commitment to compensating affected customers are positive steps, but the incident serves as a reminder of the ongoing challenges in securing customer data in the digital age.

As the cryptocurrency market continues to evolve, it is likely that we will see more sophisticated tactics from hackers and increased scrutiny of security practices at major exchanges. The hacker’s bold moves in accumulating Ethereum, despite the significant damages caused, underscore the potential for substantial gains in the volatile cryptocurrency market. The use of the CoW Protocol to minimize price slippage and reduce visibility further demonstrates the hacker’s strategic approach to managing their Ethereum holdings. The incident serves as a reminder of the ongoing challenges in securing customer data in the digital age and the need for robust security measures to protect against such threats.