New York-based scammer gambles away nearly all of the $4 million he stole from Coinbase users: ZachXBT

Onchain investigator ZachXBT says a New York social-engineering scammer, Christian “Daytwo” Nieves, stole over $4 million from Coinbase users, flaunted the loot on social media, and squandered most of the illicit proceeds gambling.

In a Monday X thread, ZachXBT alleged how Nieves — who also goes by "PawsOnHips" — runs a small call center crew that scams crypto investors out of their holders through social engineering attacks. The callers have allegedly posed as Coinbase support staff to guide victims to phishing sites.

Following a November 2024 hit that drained $240,000 from an elderly victim, ZachXBT tracked down a private recording of the alleged theft. He also traced the stolen funds to three destinations: the Roobet crypto casino and two addresses that swapped Bitcoin for Monero.

Blockchain forensics tied Nieves’ Roobet deposit address to more than 30 suspected thefts, according to ZachXBT, who noted that many other victims likely remain unknown. The sleuth also claims that Nieves has bragged on Discord about laundering money while gambling.

Nieves, who allegedly spent a portion of the stolen funds on luxury goods like a decalled Corvette and high end Rolex watch, reportedly responded to ZachXBT's initial investigation last month by posting a photo of him flipping the middle finger toward the sleuth's profile. 

No honor among thieves

Transaction records show Nieves's casino deposits have shrunk significantly, suggesting heavy losses. It appears that the alleged scammer began taking cuts from his accomplices as this bankroll dried up, ZachXBT claims.

"Daytwo has a gambling problem and you’ll see onchain how casino deposits get smaller as he loses funds," ZachXBT wrote. "It’s rare we see a social engineering scammer with such blatant disregard to mask their identity while flexing stolen funds all over social media."

“It’s a rather easy case for law enforcement to pursue,” the blockchain researcher wrote. However, the chances of recovering assets from Nieves and his cronies are slim since it appears he gambled most of it after successful thefts. 

The report lands weeks after Coinbase revealed rogue outsourced agents helped leak data on over 69,000 users. Coinbase said it fired the workers and faces a potential reimbursement bill of $180 million to $400 million.