In a significant development just days before the commencement of Sam Bankman-Fried’s trial, a wallet linked to the hack of the bankrupt FTX exchange has come to life, moving approximately $38 million worth of Ethereum (ETH). The hacker’s activity raises questions and concerns about the security and implications for the cryptocurrency market.
Recent on-chain data reveals that the wallet associated with the FTX hack became active on September 30, initiating its operation with three transactions totaling 6,250 ETH, equivalent to $10.46 million. These transfers were conducted using privacy tools like RailGun and THORChain.
On October 1, the attacker continued their activities, moving approximately 12,250 ETH in two transactions, primarily via THORChain. SpotOnChain, a prominent blockchain analytics firm, verified these fund movements, reporting that around 7,749 ETH (approximately $13 million) were transacted using THORChain and Railgun. Additionally, the attacker exchanged 2,500 ETH (valued at roughly $4.19 million) for 153.4 tBTC at an average price of $27,281 per token.
In total, the attacker managed to transfer 22,500 ETH, equivalent to $38 million, through seven transactions over the weekend. These transactions represent the first movement of funds from the compromised address since the FTX hack occurred.
FTX’s Troubled Past and Speculations Surrounding the Hack
FTX made headlines when it suffered an exploit that led to losses of approximately $400 million, just a day after declaring bankruptcy. The incident fueled speculations about the possibility of an inside job, with the identity of the attacker remaining unknown nearly a year later.
Despite the recent flurry of transactions, the FTX exploiter’s wallet still holds digital assets valued at $287 million, according to the Arkham Intelligence dashboard. Within this wallet, the attacker possesses 163,249 units of ETH and 3.9 million USDT, among other assets.
Crypto enthusiasts and experts are now expressing concerns about the potential impact of these recent transactions on the price of Ethereum. There is apprehension that the selling pressure created by the hacker liquidating their ETH holdings could hinder the cryptocurrency’s recent upward momentum.
In the past few days, Ethereum has witnessed significant growth and garnered increased interest from institutional investors and large players in the market. As of press time, the price of ETH had risen by 2.5% to $1,722.31, making it a point of attraction for acquisitions by whales.
