Ethereum faces possible billion-dollar selloff, FTX hacker amassing ETH tokens – Will the price drop to $1,000?

  • The hacker has converted DAI balances to ETH in major numbers using decentralized exchanges like Cowswap.
  • Different wallets at and FTX US continue to send funds to the hacker’s address even three days after the attack.

The hacker behind FTX’s $600 million hack last week is reportedly buying Ethereum (ETH) coins in huge quantities for a potential sell-off. Amid the FTX drama, Ethereum (ETH) went through a severe price correction last week dropping under $1,200. The world’s second-largest crypto has partially recovered back and currently trading at $1,260.

As per the on-chain data from PeckShieldAlert: “FTX Accounts Drainer has received ~21,155 $ETH from FTX Accounts Drainer 2/FTX Accounts Drainer 5/FTX Accounts Drainer 6″. 

Additionally, the FTX Accounts Drainer under question also approved the trading of $DAI stablecoin on the CoW protocol. Crypto intelligence platform Arkham Intelligence also stated that the attacker has been consolidating the balance of ETH and DAI tokens, which cannot be frozen or blacklisted on the ETH mainnet. In the recent update, Akham noted:

In the past 3 hours, the FTX attacker swapped their entire balance of DAI – $48.2 million – into ETH on Cowswap. On two different accounts, the attacker managed to swap $4 million DAI to ETH, and swapped $5 million USDT to ETH, without getting blacklisted by Tether.

These ETH balances were then sent to the attacker’s main address 0x59, making that address the 35th largest holder of ETH on the Ethereum network.

Well, if this is the case, Ethereum (ETH) can face another major sell-off from the hacker of the crypto exchange FTX. Thus, there’s every possibility that the ETH price corrects another 20 percent from here tanking all the way to $1,000.

FTX hacker continues to withdraw more assets

Even three days after the $600 million attack on FTX, wallets at and FTX U.S. continue to send more crypto assets to the FTX Drainer address 0x59A…32b. The same hacker transferred $600 million from wallets last Friday triggered through an auto-update that leaked keys and execute functions to empty other wallets.

The FTX Drainer address 0x59A…32b currently holds $62 million worth of assets. Blockchain security firm CertiK was the first to tweet regarding the same.

It further noted: “Since Nov 12th, 2022, FTX Wallet Drainer has received and swapped ~3.5B and sent ~2.8B (value of these tokens varied greatly) of various profanity and meme tokens such as FTX Sucks, F*ck FTX, CRO Next and others to a number of “meme” and famous addresses”.

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Looking at the blockchain activity, Akham Intelligence believes that the hacker is in a panic. The hacker has lost a big portion of their token holdings to slippages. To avoid further slippages the hacker had to sell PAXG, LINK, and MATIC in batches. Besides, the hacker tried to convert the stolen tokens via decentralized exchanges such as 1inch, Uniswap, DODO, and CoWSwap.

Related: Is the next Bitcoin exchange to fall after FTX Crash? CEO denies rumors – Report

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About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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