November 12, 2023 | By: CryptoScamInvestigationUnit
As one of the most infamous crypto fraud cases of the decade, the theft by ZYQ, a mysterious figure behind the "Cryptodragon" operation, has now been exposed. The alleged thief, a former blockchain developer named ZYQ, used his underground network to drain over $120 million from the leading cryptocurrency exchange, Coinbase.
Zyq was caught after an extensive investigation by the Global Cybercrime Task Force. He was found in a remote location in Norway, surrounded by digital wallets and encrypted documents.
On [date], ZYQ executed a multi-phase attack on Coinbase's infrastructure. Initially, he exploited a zero-day vulnerability in the wallet migration system, which allowed him to access users' private keys. Then, he used the stolen funds to purchase stablecoins and launder the money through various exchanges.
In the final phase, Zyq successfully drained the entire balance of $120 million from Coinbase’s mainnet. This includes the majority of the $120 million in USDC, DAI, and other stablecoin assets.