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

A wallet linked to Kraken and Coinbase accounts was drained of roughly $6.7 million in cryptocurrencies on May 20, 2026, with attackers withdrawing 1,554 ETH (~$3.3M), 10.5 BTC and 34.1 cbBTC (~$2.6M). Blockchain tracing shows about $5.3M of the proceeds were moved through Tornado Cash to obfuscate trails. The breach highlights ongoing security risks for centralized-exchange users and could pressure market sentiment for ETH (the primary asset involved) and BTC in the short term, prompting renewed focus on custody safeguards, exchange withdrawal protections, and potential regulatory scrutiny of mixers and laundering pathways.