FTX Hacker Finally Starts Dumping Huge Amount Of Ethereum!

Author: Savannah Fortis

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I am versatile journalist covering tech, blockchain and the DeFi industry. Besides that, I am a passionate street photographer.

    Story Highlights
    • Recently, the FTX drainer address that stole billions of assets from the FTX exchange started dumping massive amounts of Ethereum.

    • A continuous liquidation of Ethereum may lead to an increase of selling pressure, which can soon worsen the ongoing crypto winter

    The 2nd largest digital asset in terms of market capitalization seems to get trapped amid the ongoing FTX-Alameda drama as the collapse of FTX and its hack of the security system of over $600 million worth of crypto funds has led to a scarcity in circulation. The FTX hacker has exploited millions of dollars of Ethereum from FTX to the drainer account and is now slowly liquidating all the holdings to create a significant dump for Ethereum’s price. 

    80K Ethereum Gets Liquidated By The FTX Hacker 

    Being the 35th largest Ethereum whale holder, the exploiter has now taken the responsibility to create a massive price dump in Ethereum by slowly selling off his ETH holdings. It is reported that the hacker holds nearly $300 million worth of Ethereum, and a decision to liquidate all the funds may lead to a massive crash in the crypto market. 

    An on-chain data provider, LookonChain, recently revealed through a Twitter thread that the FTX hacker has started converting ETH. According to the firm, the FTX account drainer address has transferred 50K Ethereum ($60 million) to an address starting with ‘0x866e,’ from which the hacker may proceed in cashing out the funds. 

    Source : LookonChain

    Moreover, the hacker also swapped 30,990 Ethereum for 2197.5 renBTC, and 1070 BTC have been transferred to the BTC network. Hacker cross-chains renBTC to BTC chain regardless of market depth and premium, and due to it, the current premium has reached 4%. A whale amount of arbitrage funds cross-chain BTC to renBTC has led to a rapid increase in the issuance of ren.

    What Is Expected From The Market Next?

    Currently, the hacker’s address holds over 100K Ethereum, and more liquidation of Ethereum may kick off a blood bath for the digital asset with a prolonged bearish trend. This has led to several speculations and viewpoints that if the hacker makes up his mind to cash out all the Ethereum, it may force others to exit the market to avoid any upcoming FUD situation, leading to the worst crypto winter by the end of 2022. 

    A well-known crypto analyst, Dylan LeClair, said, “The FTX exploiter, who has been dumping all other drained assets for ETH, is now one of the largest holders in the world, with 228,523 ETH ($284.82m) currently in their wallet. Everyone should keep an extremely close eye on what happens next…”

    The hacker previously made huge transactions as he swapped 7,420 BNB on the BSC chain into 1,500 Ethereum and converted $48 million DAI into 37,000 ETH. He also withdrew 25,000 ETH for about $31.6 million from the Aave Protocol V2. 

    Following the recent incident, ETH has dramatically dropped from $1,200 and is trading at $1,171. If Ethereum’s price continues to face a massive dump situation, it may accelerate its selling pressure and drop below its crucial support zone of $1,150, which can force it to trade near $900. 

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    Savannah Fortis

    I am versatile journalist covering tech, blockchain and the DeFi industry. Besides that, I am a passionate street photographer.

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