Kraken and Coinbase User Loses $6.7M in Crypto Theft as Funds Move Through Tornado Cash

A crypto user has lost around $6.7 million in digital assets after attackers drained funds from accounts linked to both Kraken and Coinbase.

The incident, highlighted by Wu Blockchain, showed large withdrawals of ETH, BTC, and cbBTC from the victim’s exchange accounts.

Key Points

• A Kraken and Coinbase user lost $6.7M after hackers drained ETH, BTC, and cbBTC from exchange accounts.
• On-chain analyst Specter tracked the stolen assets to wallets linked to fast-moving laundering transactions.
• Attackers allegedly moved about $5.3M through Tornado Cash shortly after the theft.
• The incident adds to growing concerns over phishing, malware, and targeted attacks on crypto holders.

Millions Drained From Kraken and Coinbase Accounts

According to Specter, the victim’s Kraken account saw withdrawals totaling 1,554 ETH worth about $3.3 million, alongside 10.5 BTC. At the same time, attackers withdrew 34.1 cbBTC worth roughly $2.6 million from Coinbase.

The stolen funds were traced to the following wallet addresses:

• Ethereum address: 0xd…79982A
• Bitcoin address: bc1…6nqv3

Initial reports suggested the theft may have resulted from a physical attack targeting the account holder. However, Specter later updated the assessment, stating the incident likely did not involve physical coercion.

$5.3 Million Allegedly Laundered Through Tornado Cash

Blockchain analysis showed that the attackers quickly moved a significant portion of the stolen assets through Tornado Cash, a crypto mixer frequently used to obscure transaction trails on Ethereum.

Specter claimed that approximately $5.3 million had already been deposited into Tornado Cash. In other words, the attacker moved to launder the funds shortly after the theft.

Meanwhile, the analyst did not provide additional details on how the attackers may have gained access to the victim’s exchange accounts. However, the incident adds to concerns over account security and targeted crypto thefts involving centralized exchanges.

Security Concerns Continue to Rise

The case highlights ongoing risks for high-value crypto holders as attackers exploit compromised credentials, phishing, malware, and social engineering to gain access to exchange accounts.

Notably, Kraken and Coinbase offer security measures such as two-factor authentication, withdrawal protection tools, and account whitelisting features. Yet, sophisticated attacks continue to affect users across the industry.