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FTX Hacker Hoarding Ethereum (ETH) for Possible Market Selloff

Published 11/16/2022, 02:37 AM
Updated 11/16/2022, 04:00 AM
©  Reuters FTX Hacker Hoarding Ethereum (ETH) for Possible Market Selloff
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  • FTX Hacker has become the 35th largest holder of Ethereum (ETH).
  • Using decentralized exchanges like Cowswap, the hacker has swapped a large number of DAI holdings to ETH.
  • Even three days after the attack, different wallets at FTX.com and FTX US are still sending money to the hacker’s address.
  • ETH seemed unmoved by the news as of writing. The price of ETH was $1,265.

On Friday, it was reported that a hacker had stolen a share of the remaining client funds from FTX. The FTX hacker, who stole roughly $400 million worth of crypto assets from the defunct crypto exchange, is currently accumulating Ethereum tokens.

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On-chain data shows that FTX Accounts Drainer has collected around 21,155 ETH from additional FTX Accounts Drainers. Furthermore, the FTX Account Drainer in question has authorized the trading of DAI on the CoW Protocol: GPv2VaultRelay, according to information provided by the security firm PeckShield Alert. Consequently, the hacker carried out the following transactions:

  • Converted 7,420 BNB on BSC into 1,500 ETH
  • Converted $48 million in DAI into 37,000 ETH
  • Traded 3,500 BNB for 962,071.43 BUSD
  • Traded 3,500 BNB for 958,560.13 BUSD
  • Traded 15,000 BNB for 3,899,020.38 BUSD

FTX Hacker Becomes 35th Largest Holder of ETH Tokens

The hacker then converted almost 3.9 million BSC-USD to Ethereum via the Celer Network, sending it to cBridge and Stargate Finance in return for 5,564.83 ETH. The hacker is now claimed to be in possession of a total of 217,000 ETH, making them the 35th largest holder of Ethereum.

Arkham, an on-chain intelligence platform, claims that the FTX hacker lost a large number of tokens because of mistakes. In order to try to do a token swap, many decentralized exchanges like UniSwap, 1inch, DODO, and CowSwap were used. To avoid making mistakes, the hacker had to sell PAXG, LINK, and MATIC in groups.

On the Flipside

  • At the request of U.S. authorities, Paxos has put the accounts in question on a blacklist. This makes it impossible for the attackers to access or move $20 million worth of PAXG tokens.
  • The hacker who targeted the now-defunct cryptocurrency exchange FTX is probably an insider. The careless actions point to a less skilled FTX exploiter. They appear to have acted hastily and sought to do as much as they could with the money since they lack a clear plan.

Why You Should Care

After stealing millions in digital assets from FTX last week, the hacker is rumored to be stocking up on Ethereum tokens for a potential huge sell-off. Amidst the FTX upheaval, the price of ETH had a major correction last week, dropping below $1,200. The price of the second-largest cryptocurrency in the world has, at the time of writing, recovered to $1,265, according to Coinmarketcap data.

See original on DailyCoin

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