TL;DR
- ZachXBT identified Christian Nieves as the leader of a scam that stole over $4 million from Coinbase users through phishing and impersonating customer support.
- Most of the stolen funds were gambled away on Roobet and moved into wallets that swapped BTC for Monero to cover their tracks.
- Coinbase admitted to a data leak affecting 69,000 accounts by outsourced agents and estimates potential reimbursements of up to $400 million.
On-chain investigator ZachXBT exposed Christian Nieves, a New York-based scammer who led a phishing operation targeting Coinbase users and stole more than $4 million.
ZachXBT Reveals the Scam’s Mechanics
According to the investigation, Nieves used social engineering tactics to impersonate Coinbase customer support and direct victims to fake websites where their account access was stolen. Most of the funds ended up wagered on Roobet, an online crypto casino, while the rest moved into wallets that swapped Bitcoin for Monero to obstruct tracing efforts.
One victim, an elderly person, lost $240,000 in November 2024. ZachXBT obtained a private recording of that case and tracked the stolen funds to three destinations, including Roobet. Wallets tied to Nieves showed over 30 suspicious transactions, though many more victims likely remain unidentified. Nieves himself, known online as “Daytwo” and “PawsOnHips,” bragged in social media posts and Discord channels about laundering money while gambling.
Security Issues at Coinbase
Part of the stolen money funded luxury purchases like a customized Corvette and a Rolex watch. When the investigation surfaced, Nieves posted an insulting image aimed at ZachXBT on his social media. However, on-chain records showed that his activity on Roobet fell sharply as he lost funds, eventually forcing him to take a cut of his accomplices’ profits.
ZachXBT described the case as an easy one for authorities to pursue since Nieves operated so openly, flaunting stolen funds without safeguarding his identity. Still, he warned that recovering the stolen crypto would be difficult because most of it was gambled away soon after each theft. This case adds to Coinbase’s ongoing troubles after the platform admitted that outsourced agents leaked data from over 69,000 accounts. The company estimates that reimbursements could reach up to $400 million
