Coinbase exploiter flexed crypto and a monkey after $16m heist

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As a seasoned researcher, I find myself often navigating the murky waters of the digital world, uncovering hidden truths and exposing illicit activities. The recent saga involving “Excite” and the $15.9 million heist from Coinbase Commerce is yet another example of how cryptocurrency can be both a revolutionary force for good and a playground for scoundrels.

As a researcher, I uncovered an intriguing case involving a fraudster, who went by the name “Excite.” This individual boasted about ill-gotten gains and even showcased a real monkey, following dubious transactions worth approximately $15.9 million that were facilitated through a Coinbase Commerce contract.

Back in April 2024, I came across some troubling news as a crypto investor. As it turns out, approximately $16 million was covertly drained from a Coinbase Commerce contract, and this was achieved through around 1,700 transactions on the Polygon network – a layer-2 scaling solution. This discovery was made by blockchain investigator ZachXBT.

The wrongdoers transferred illegally obtained USDC coins from Polygon to Ethereum and then distributed these assets among various digital wallets, a technique often employed by cybercriminals in cryptocurrency theft to perplex tracking systems on the blockchain.

In April 2024, there was a questionable outflow of $15.9 million from a Coinbase Commerce contract, suggesting that a merchant might have fallen victim to exploitation. Not long after, a hacker known as ‘Excite’ started boasting about the stolen funds in online conversations. Let’s delve into it!

— ZachXBT (@zachxbt) December 10, 2024

ZachXBT disclosed on X that the majority of the funds stayed idle, while a portion was moved into exchange platforms eXch and Stake, a cryptocurrency gambling site.

In May, an anonymous user on Telegram, identified as “tezedasads12”, revealed that they possessed a digital wallet holding approximately $6 million, which was traced back to a hack. Furthermore, this person asserted management of an Instagram account known as “Excite”, where they displayed a monkey and expensive watches, suggesting these items were bought in Denmark using the embezzled funds.

Although the victim’s identity in this instance remains undisclosed, it’s evident that a substantial clue points towards apprehending this malicious actor legally. Given the manner in which the funds were divided among three parties, it seems plausible that others might have played a role as well. A question that arises is why Coinbase’s Anti-Money Laundering (AML) monitoring system didn’t detect and flag this suspicious activity within approximately 16 hours.

ZachXBT on X

Over the past few months, ZachXBT has uncovered numerous instances of cryptocurrency theft involving Coinbase. In November alone, this on-chain investigator revealed a $6.5 million heist from a Coinbase user. The alleged crypto scammer, Ronald Spektor, subsequently shut down his social media accounts following the public disclosure, sparking rumors about his potential role in the incident.

In simpler terms, ZachXBT aided an elderly individual in retrieving approximately $275,000 worth of their Bitcoin (BTC). This person, who used Coinbase as their platform, had been tricked by fraudsters from India.

The findings of investigations conducted by ZachXBT resulted in arrests concerning a massive $238 million cryptocurrency theft. As detailed in an August report, one Genesis creditor fell victim to fraudulent Coinbase customer service representatives, who subsequently stole approximately 4,064 Bitcoins worth of the individual’s fortune.

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2024-12-10 20:16