FTX Hacker Becomes Major Ethereum Holder
FTX Hacker's Ethereum Accumulation
A hacker who targeted the defunct crypto exchange FTX has emerged as the 35th largest holder of Ethereum (ETH). This individual executed a series of transactions through decentralized exchanges like Cowswap, converting a substantial amount of DAI into ETH. Despite the ongoing aftermath of the attack, the price of ETH remained stable at approximately $1,265.
Significant Crypto Theft
The hacker managed to seize around $400 million in crypto assets from FTX. On-chain data indicates that the hacker, referred to as "FTX Accounts Drainer," has amassed 21,155 ETH from various FTX accounts. Using platforms like the CoW Protocol, the hacker exchanged tokens such as BNB and DAI for a significant amount of ETH.
Transaction Details
The hacker conducted various transactions, including converting 7,420 BNB into 1,500 ETH and $48 million in DAI into 37,000 ETH. Additionally, several trades involving BNB and BUSD were executed. The hacker also utilized networks like Celer Network to convert BSC-USD to Ethereum, resulting in a total holding of 217,000 ETH.
Challenges and Mistakes
On-chain intelligence suggests the hacker faced challenges and mistakes during the swaps, losing a notable number of tokens. Decentralized exchanges such as UniSwap and 1inch were used to manage these swaps. The hacker had to sell tokens like PAXG, LINK, and MATIC in groups to mitigate errors.
Security Measures
In response to the hacker's activities, U.S. authorities requested Paxos to blacklist specific accounts, restricting access to $20 million in PAXG tokens. The hacker's behavior indicates potential insider knowledge, but also reveals a lack of expertise due to hasty and unplanned actions.
Market Implications
The hacker's accumulation of Ethereum raises concerns about a potential large-scale sell-off, which could impact the market. Despite the upheaval, ETH prices have shown resilience, rebounding to $1,265 after a significant drop below $1,200. This situation highlights the ongoing volatility and security challenges in the cryptocurrency space.
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