The recent turmoil in the crypto market saw the hacker responsible for a significant breach at Coinbase facing a financial setback just days after acquiring a large quantity of Ethereum. The hacker, who is alleged to have stolen over $300 million from the platform, purchased 3,976 ETH at a price of $4,756 per token, totaling more than $18.9 million. However, within a mere two days, this individual sold the same amount of ETH for approximately $4,522 per token, incurring a loss of about $932,000.
After selling off the Ethereum, the hacker quickly exchanged the proceeds for DAI, a stablecoin known for its decentralized nature. According to Arkham Intelligence, utilizing stablecoins allows the hacker to mitigate the volatility characteristic of the crypto market, facilitating smoother transactions. Unlike central authority-backed stablecoins such as Tether (USDT) or USD Coin (USDC), DAI operates without a governing body that can freeze assets or impose restrictions, making it an attractive option for those engaging in illicit activities.
While this dramatic sell-off unfolded, the broader crypto landscape was witnessing significant movement among large-scale investors, often referred to as “whales.” On-chain data revealed that these entities have been withdrawing Ethereum worth over $20 million from various exchanges, including Binance and Kraken. Notable transactions included a new wallet taking out 5,297 ETH valued at $24.7 million from Binance and Bitget, and a separate whale transferring approximately $61.6 million worth of ETH from FalconX.
The current market environment has been tumultuous, with more than $108 million in Ethereum liquidated in just 24 hours. This trend has led to a substantial reduction in long positions, approximately 86% of which have been wiped out. Contributing to this volatility is ongoing regulatory uncertainty, particularly regarding BlackRock’s delayed decision on adding staking to its Ethereum Exchange-Traded Fund (ETF), which has been postponed to late October. Similar postponements affecting plans from other firms, like 21Shares and Grayscale, have also added to market apprehensions.
As of the latest trading data, Ethereum is priced at approximately $4,522, having experienced a 1.57% decline over the past day. Earlier in the day, it had peaked above $4,700 before retreating. Despite recent fluctuations, overall metrics for Ethereum ETFs indicate growth, with total net inflows reaching $13.36 billion and total net assets standing at $30.35 billion by mid-September. Daily trading activity also remains robust, showcasing a high level of engagement among institutional and retail investors looking to navigate the crypto landscape through regulated channels.
