Thanks to FTX, top-tier Ethereum whale is hacker
We’ve already covered the bizarre situation on the Ethereum network where one of the largest holders on the entire blockchain stole 100% of his holdings and is now successfully trading them while slowly growing his portfolio.
During the FTX catastrophe, the last thing investors needed was a sudden hacker attack leading to a withdrawal of around $300 million of digital funds from the drowning centralized cryptocurrency exchange.
After successfully stealing users’ funds, the hackers quickly exchanged their holdings for Ethereum. The most likely reason behind this was the desire to “launder” those funds on decentralized coin mixing solutions to avoid future prosecution.
Unfortunately, on-chain sleuths or FTX exchange representatives could not determine who might be tied to such a large heist of users’ funds, which sparked various speculations on social media channels about the potential affiliation of the exchange’s managers, who had some kind of access to hot or cold wallets.
Just a few weeks ago, the FTX hacker was the 35th largest holder on the Ethereum network, and now, thanks to proper fund management, he has moved up to the 27th position with the potential to break into the top 25.
However, it would be inaccurate to assume that the hacker is actually one of the biggest holders of Ethereum on the network. The majority of institutional investors or influencers distribute their holdings across numerous wallets in order to improve their resilience against potential attacks and scams.
In the near future, the FTX hacker has no choice but to somehow launder their funds in order to exchange them for fiat currencies in the future, which is why the Ethereum network’s high position at the top must be temporary.