A hacker, previously linked to Coinbase user fund theft, converted 18.91 million DAI into 3976 ETH at $4756 per ETH, signaling continued asset movement and raising market security concerns.

Executive Summary

An unidentified hacker, associated with previous thefts from Coinbase users, recently executed a significant on-chain transaction. The entity converted 18.91 million DAI into 3,976 ETH at an average price of $4,756 per ETH. This activity, monitored by on-chain analyst EmberCN, underscores persistent security challenges within the cryptocurrency ecosystem and the ongoing movement of illicitly obtained assets.

The Event in Detail

Within the last 30 minutes, a hacker identified by EmberCN utilized 18.91 million DAI, confirmed to be stolen from Coinbase users, to acquire 3,976 ETH. The average purchase price for this transaction was $4,756 per ETH, bringing the total value of the purchased ETH to approximately $18.9 million.

This follows a pattern of activity by a hacker who previously stole funds from a Coinbase user, converting $12.5 million in DAI to 4,863 ETH at a rate of $2,569 per ETH. The hacker still holds $45.36 million in DAI across two wallets, 0xc84c35f57caeeb5da8e31d1144c293ae5851ab84 and 0x52026781f3c489359e2d79eacce00c719d047a81, suggesting potential for further ETH acquisitions.

Separately, the Radiant Capital exploiter recently moved 5,933 ETH (approximately $26.7 million) through Tornado Cash, an act that obscures the funds' trail. This exploiter previously converted approximately $53 million in stolen assets into ETH at around $2,420, a position now valued at about $104 million. This entity also realized an additional $5.1 million in profit in August through three low-buy, high-sell ETH swing trades, demonstrating a sophisticated understanding of ETH market dynamics.

Market Implications

This recent transaction could intensify market scrutiny on the security measures implemented by centralized exchanges. While the immediate impact on ETH price may involve minor volatility if subsequent movements by the hacker are publicized, the long-term effect reinforces the persistent challenge of asset security within the crypto space. The ongoing ability of illicit actors to convert and move stolen funds highlights the critical importance of robust on-chain monitoring systems.

The use of privacy tools like Tornado Cash by other major exploiters, such as the Radiant Capital hacker, indicates a continued effort by cybercriminals to launder funds, posing a complex challenge for investigators and security protocols across the Web3 ecosystem. The conversion of stablecoins like DAI into volatile assets such as ETH also suggests a strategy aimed at leveraging potential market gains from stolen capital.

Broader Context

The incident contributes to the broader narrative of escalating sophistication in cyberattacks targeting the DeFi sector. The Radiant Capital hack, which resulted in $53 million in stolen funds and a 66% drop in TVL, exposed critical vulnerabilities in cross-chain protocols and unaudited smart contracts. Such incidents highlight the need for comprehensive security audits and strengthened protocols.

Reports indicate that North Korean cybercrime organizations, including the Lazarus Group, were responsible for 61% of total crypto stolen in 2024, amounting to $1.34 billion across 47 incidents. These groups often employ advanced techniques, including exploitation of multi-signature wallets and macOS-specific malware, to execute their attacks.

Conversely, Coinbase has demonstrated proactive measures against such illicit activities, collaborating with law enforcement agencies like the U.S. Secret Service (USSS). This collaboration led to the seizure of $225 million in USDT linked to "pig butchering" scams and the identification of over 130 Coinbase customers defrauded of $2.3 million. These efforts underscore the ongoing battle between cybercriminals and security forces in the evolving digital asset landscape.