In one of the most significant exploits in the crypto space, the now-defunct FTX exchange fell victim to a hack a few hours after declaring bankruptcy, leading to a loss of more than $600 million. The aftermath of this incident is still being felt, as evidenced by recent developments regarding the FTX exploiter.
According to an on-chain report on Saturday, September 30, an address associated with the FTX exploiter became active for the first time in 10 months. This unexpected reappearance has raised many eyebrows in the crypto community and has sparked speculation about the exploiter’s intentions.
Initially, it was reported that 5,000 ETH, equivalent to $8.2 million, was transferred from the flagged address (identified as 0x3e9) to new addresses. However, the latest update reveals that the FTX exploiter has moved more than $17 million worth of Ether tokens in the past 24 hours. These funds have been spread across five addresses, indicating a deliberate effort to diversify the holdings.
A breakdown by Spot On Chain, a blockchain data tracker, shows that a significant portion of the transferred funds, 7,749 ETH (equivalent to about $13 million), was moved to the Thorchain router and Railgun contract. Both of these decentralized finance (DeFi) protocols are known for their privacy-focused features. This strategic move suggests that the exploiter is actively trying to protect their identity and secure their ill-gotten gains.
Within the past day, the FTX exploiter executed swap transactions involving 2,500 ETH, approximately $4.19 million. These funds were converted to 153.4 tBTC, an ERC-20 token standard for Bitcoin, at an average price of $27,281. This conversion highlights the exploiter’s desire to diversify their holdings and potentially mitigate the risk associated with holding a single cryptocurrency.
The recent movement of funds by the attacker has led to speculation about their motives. One theory suggests that the highly likely approval of Ether futures ETFs in the US may have triggered this activity. The exploiter might be anticipating a price rally in ETH after the greenlighting of futures ETFs and is taking preemptive measures to cash out their tokens at that opportune moment. However, it is important to note that there is no substantial evidence to support these connections.
Given the significant amount of funds moved by the exploiter, it is expected that spectators will closely monitor the address’s activity. Spot On Chain has already suggested that the exploiter may continue to transfer ETH, indicating an ongoing strategy to secure and potentially profit from their illicit gains.
Amidst these developments, Ethereum, the second-largest cryptocurrency, has shown resilience and signs of recovery. The Ethereum price ended September on a positive note, experiencing a nearly 6% jump in value over the past week. Approaching the psychological $1,700 level with a 0.6% rise in the past day, ETH is poised for continued growth.
While Ethereum’s recovery is promising, recent data from CoinGecko indicates a nearly 4% decline in daily trading volume for the cryptocurrency. This decline suggests a fall in market activity, which could potentially hinder ETH’s short-term momentum. However, given Ethereum’s established market position and a market cap exceeding $200 billion, it is well-positioned to overcome any temporary setbacks.
The recent movements of the FTX exploiter have brought attention back to the significant hack that plagued the now-defunct exchange. As funds continue to move and diversify, the exploiter’s intentions remain a subject of speculation. Whether driven by anticipation of ETH futures ETF approval or a desire to protect their identity, the exploiter’s actions emphasize the importance of security and vigilance within the crypto space. As Ethereum continues its recovery and market dynamics evolve, stakeholders will closely monitor the exploiter’s address activity and its potential impact on the broader cryptocurrency market.
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