ZachXBT Exposes $4M Coinbase Heist: How Scammers Drained Wallets Dry

Crypto detective ZachXBT just dropped a bombshell—a slick $4 million scam exploiting Coinbase users, leaving digital wallets emptier than a Bitcoin maximalist's empathy.

How the heist went down

The attackers bypassed security measures like a hot knife through decentralized butter, syphoning funds while victims slept. No fancy tech—just old-school social engineering with a Web3 twist.

Anatomy of a modern crypto robbery

These weren't brute force hacks but precision strikes—the kind that makes you wonder if 'not your keys, not your coins' should include 'not your gullibility'. The $4 million haul proves even Coinbase's brand can't outshine human error.

Another day, another 'trustless' system requiring blind trust. Maybe next time we'll learn—or just wait for the $8 million sequel.

According to blockchain analysis, the stolen funds were allegedly divided into three portions. One share was reportedly deposited into the crypto-only gambling platform Roobet, while the remaining amounts were converted into Monero (XMR), a privacy-focused cryptocurrency known for its anonymized transactions.

ZachXBT further alleged that Nieves exhibited compulsive gambling behavior, often placing bets on crypto casino platforms while active in Discord calls with acquaintances. In one such recording, Nieves, using the alias “PawsOnHips”, inadvertently exposed his Roobet deposit address through an open browser tab, linking him directly to the flow of stolen funds.

The on-chain analysis also led ZachXBT to identify a cryptocurrency deposit address tied to Nieves’ alleged gambling activity. According to the investigator, the same address is connected to more than 30 suspected crypto thefts, losing over $4 million combined, further implicating Nieves in a broader pattern of fraudulent behavior. “I expect there’s many additional victims I am unable to directly link. While there’s potentially overlap between multiple threat actors the vast majority of activity pertains to Daytwo,” ZachXBT wrote, pertaining to Nieves. 

Additionally, ZachXBT noted that Nieves made little effort to hide his identity throughout the scheme. In recorded Discord calls, Nieves and his associates reportedly discussed laundering stolen funds while openly displaying their faces. He also allegedly used a portion of the illicit proceeds to purchase a Corvette, which he branded with a sticker bearing his online alias—further tying his real-world identity to his digital persona.

The investigation spotlights the growing role of independent blockchain analysts in exposing crypto-related fraud. As phishing schemes become increasingly sophisticated, the case highlights the urgent need for stronger user protections, platform vigilance, and public awareness to combat social engineering in the digital asset space.

Read More

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the shiba inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.