A Kraken and Coinbase user lost $6.7 million in ETH, Bitcoin, and cbBTC as attackers moved stolen funds through Tornado Cash to hide blockchain activity
A crypto user connected to Kraken and Coinbase reportedly lost nearly $6.7 million in digital assets after attackers drained funds and later moved most of the stolen crypto through Tornado Cash. The incident has once again raised concerns around crypto security, suspicious wallet activity, and how stolen assets continue moving across blockchain networks.
According to blockchain investigator Spector report, the victim lost a large amount of Ethereum, Bitcoin, and cbBTC from accounts connected to both exchanges.
The stolen assets reportedly included around 1,554 ETH worth nearly $3.3 million, 10.5 Bitcoin, and 34.1 cbBTC valued at roughly $2.6 million. Together, the total theft reached approximately $6.7 million.
Investigators traced the stolen funds to blockchain addresses labeled “0xd3191” and “bc1qxn,” where the assets were later consolidated after the attack.
Early investigation reports initially suggested the theft may have been connected to a physical attack. However, later updates reportedly clarified that the incident was not directly linked to physical violence. Still, the exact method used by attackers to access the victim’s accounts remains unknown.
Blockchain investigators noted that the stolen crypto was not transferred in a single transaction. Instead, the attackers divided the assets into multiple smaller transfers before combining them again into centralized destination wallets.
On the Ethereum side, the stolen funds were reportedly separated into transactions of 0.809 ETH, 1,249.999 ETH, and 304.126 ETH before being consolidated again.
The Bitcoin transfers followed a similar pattern. Investigators observed multiple smaller BTC movements, including one transfer containing around 10.47 BTC along with several tiny transactions.
Security experts say this method is commonly used by attackers trying to make blockchain tracking more difficult. Meanwhile, by breaking funds into smaller transactions, criminals attempt to create more complicated transaction trails across multiple wallets and networks.
After the funds were moved across several wallets, investigators found that around $5.3 million of the stolen assets was later sent through Tornado Cash.
Tornado Cash is a crypto mixing platform designed to hide blockchain transaction histories by pooling funds from different users before redistributing them to new wallets.
Because blockchain transactions remain publicly visible, attackers often use mixing tools to make it harder for investigators and exchanges to trace stolen assets directly back to them.
The theft has also renewed debate around how centralized exchanges monitor suspicious blockchain activity.
Earlier the same day, blockchain investigator Specter commented on another case involving KuCoin after a user claimed stolen funds from a separate scam were traced to a KuCoin-linked deposit wallet.
According to blockchain data shared online, around 45 ETH worth nearly $95,000 was transferred from a personal wallet into an address tagged as “KuCoin 17.”
The situation has increased discussions around whether crypto exchanges are doing enough to flag suspicious deposits before funds are processed or withdrawn.
As of now, neither Kraken nor Coinbase has publicly commented on the reported $6.7 million theft case.
Meanwhile, blockchain investigators continue tracking wallet activity connected to the stolen funds as part of ongoing monitoring efforts across the crypto ecosystem.
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