Coinbase Hacker Resurfaces After Two Months, Buys 4,800 ETH with Stolen Funds – What’s Next?

• Why Did the Coinbase Hacker Just Spend $12.5M on Ethereum?
• How Did $300M Vanish from Coinbase in the First Place?
• What Makes This Crypto Thief Different from Typical Hackers?
• Could the Stolen ETH Trigger Another Market Shakeup?
• What Does This Mean for Crypto Exchange Security?
• Ethereum’s Price Outlook Amid the Hacker’s Bets
• Will Law Enforcement Ever Catch the Coinbase Hacker?
• Lessons for Crypto Investors from This $300M Saga
• FAQs: The Coinbase Hacker’s $300M Ethereum Moves

The notorious hacker behind the $300 million Coinbase breach has reemerged, purchasing 4,863 ETH ($12.55M) in a bold move that’s reigniting speculation about their next steps. This comes after the attacker liquidated over 53,000 ETH earlier this year, showcasing a calculated strategy that’s left the crypto community both alarmed and oddly impressed. With Ethereum’s price showing steady gains and ETF approvals fueling demand, the hacker’s latest play suggests confidence in ETH’s upward trajectory. Below, we break down the on-chain breadcrumbs, analyze the hacker’s market-savvy maneuvers, and explore what this means for crypto security.

Why Did the Coinbase Hacker Just Spend $12.5M on Ethereum?

Blockchain sleuths at Lookonchain spotted the suspicious activity on July 7, 2025: the same address linked to May’s massive Coinbase heist suddenly converted stolen stablecoins into 4,863 ETH at $2,581 per token. This strategic buy-in occurred as ETH posted weekly gains of 4.5%, suggesting the hacker is doubling down during a market upswing. Notably, this mirrors their previous pattern – in May, they sold 26,762 ETH at $2,588 (netting $69.25M), and in April, they dumped 26,347 ETH via THORChain for $68.18M in DAI. The BTCC research team notes this “sell high, buy higher” approach demonstrates unusual sophistication for a cybercriminal, blending hacking skills with trader-level market timing.

How Did $300M Vanish from Coinbase in the First Place?

The saga began in May 2025 when a compromised customer support agent (reportedly outside the U.S.) enabled access to sensitive data of 97,000 users – including Sequoia Capital’s Roelof Botha. Unlike typical exchange hacks exploiting smart contract flaws, this breach highlighted human vulnerabilities. According to TradingView data, the stolen funds were initially converted to ETH during a market dip, then strategically liquidated during rallies. “This wasn’t smash-and-grab,” remarks a BTCC analyst. “The hacker treated stolen funds like a hedge fund portfolio, waiting for optimal exit liquidity.”

What Makes This Crypto Thief Different from Typical Hackers?

Three traits set this attacker apart:(disappearing for months between moves),(exploiting ETH’s 2.6% monthly rise), and(diversifying into stablecoins before rebuying). When they sold $69M worth of ETH in May, it coincided with the local top before a 9% correction. Their recent repurchase aligns with renewed institutional interest post-ETF approvals. Crypto Twitter erupted with backhanded praise: “Dude’s got better entry points than my trading bot,” joked one trader. Even critics admit the hacker’s moves resemble professional arbitrage more than frantic money laundering.

Could the Stolen ETH Trigger Another Market Shakeup?

With 4,800+ ETH now back in the hacker’s wallet, concerns loom about potential market impacts. Historical data from CoinGlass shows large stolen fund dumps can cause 3-5% price swings. However, the current holding represents just 15% of their May liquidation volume. “They’re playing the long game,” suggests a Lookonchain researcher. The hacker’s wallet remains under 24/7 surveillance by blockchain analytics firms, making sudden large sales difficult. Interestingly, their remaining stablecoin reserves could fuel further ETH accumulation if prices dip – a scenario that WOULD ironically make them a market supporter.

What Does This Mean for Crypto Exchange Security?

The breach exposed critical gaps in centralized systems. While Coinbase’s cold storage remained untouched, the hack exploited: 1) Overprivileged support staff 2) Inadequate multi-factor authentication 3) Delayed transaction monitoring. Post-incident, exchanges like BTCC have implemented stricter vendor controls and behavioral biometrics. Yet as this hacker proves, determined attackers now combine technical skills with financial acumen – a dangerous evolution requiring equally sophisticated defenses.

Ethereum’s Price Outlook Amid the Hacker’s Bets

Market reactions have been muted so far, with ETH holding at $2,562 (+1.9% daily) at press time. Analysts note the hacker’s actions reflect broader trends: 1) ETF-driven institutional demand 2) Anticipation of Ethereum’s Dencun upgrade 3) Growing DeFi TVL. “Their buys aren’t moving markets yet,” says a TradingView chartist, “but if this becomes a pattern, it could signal whale accumulation phases.” The BTCC team cautions that while the hacker’s timing has been impeccable, retail traders should avoid blindly following such high-risk players.

Will Law Enforcement Ever Catch the Coinbase Hacker?

Despite the very public blockchain trail, challenges persist: 1) The attacker likely used mixers like Tornado Cash initially 2) Jurisdictional hurdles complicate investigations 3) Crypto’s pseudonymous nature protects identities. However, their recurring activity increases exposure. “Each on-chain MOVE is another breadcrumb,” says a Chainalysis expert. With Interpol now involved and exchange blacklists active, cashing out without detection grows harder – possibly explaining the hacker’s preference for holding volatile assets over fiat conversions.

Lessons for Crypto Investors from This $300M Saga

Beyond the drama, key takeaways emerge: 1) Diversify holdings across exchanges/wallets 2) Use hardware wallets for large sums 3) Monitor transaction alerts religiously 4) Beware of “too good to be true” support requests 5) Consider decentralized alternatives for sensitive transactions. As one Reddit user quipped, “If this hacker can HODL through 20% swings, maybe I shouldn’t panic-sell at 2% dips.”

FAQs: The Coinbase Hacker’s $300M Ethereum Moves

How much ETH does the Coinbase hacker currently hold?

As of July 7, 2025, the hacker’s known wallet contains 4,863 ETH ($12.55M) plus undisclosed stablecoin reserves from prior sales.

What’s the hacker’s total profit from the stolen funds?

Assuming they sold 53,109 ETH at ~$2,588 (totaling $137.43M) and accounting for the $300M initial theft, they’ve realized ~45% of stolen value while retaining significant assets.

Could the hacker be insider trading with stolen funds?

While unproven, their precise market timing – selling before May’s correction and rebuying during ETF HYPE – suggests privileged market awareness beyond typical criminals.

Has any stolen crypto been recovered?

No public reports confirm recoveries. Unlike the Poly Network hacker who returned funds, this actor shows no intention of restitution.

How are exchanges preventing similar breaches?

Post-hack measures include: 1) Restricted internal data access 2) AI-driven anomaly detection 3) Mandatory transaction delays for large withdrawals 4) Enhanced employee vetting.