In a recent turn of events, the crypto community saw the reappearance of the FTX exploiter who successfully moved $600 million worth of tokens nearly a year ago.
Earlier today, on-chain data revealed that the address belonging to the FTX exploiter, known as 0x3e957, had moved 2500 Ethereum (ETH) tokens in two notable transfers, each batch valued at $4 million.
The Exploiter’s Return
Spotonchain, a blockchain analytics platform, reported that the FTX exploiter had recently activated their address for the first time in several months. Shockingly, the wallet in question now holds a substantial amount of ETH tokens valued at approximately $16.75 million.
This development has raised questions about the hacker’s intentions, particularly whether they are waiting for the right ETH price to unload their substantial holdings. Historically, such token transfers have been associated with selloff activity, a move that can have a detrimental impact on the cryptocurrency’s price, particularly affecting small investors.
The FTX Hack Recap
The FTX hack, which took place nearly a year ago, sent shockwaves through the crypto industry. CertiK, a crypto analytic outfit, has determined that the hacker used a peel chain approach to launder the renBTC.
A peel chain approach, in particular, is a money laundering strategy used to launder significant sums of digital assets. It employs long chain series that are broken down into simple transactions.
Implications for ETH’s Price
The resurfacing of the FTX exploiter and the potential selloff activity raises questions about Ethereum’s price trajectory. Large-scale token sales can lead to market volatility and negatively impact small investors.
Ethereum, like other cryptocurrencies, is susceptible to price fluctuations based on supply and demand dynamics. If the exploiter decides to liquidate a significant portion of their holdings, it could lead to a short-term price decline.
Adding another layer of complexity to the situation, various firms are planning to launch Ethereum-based ETFs on October 2, 2023. However, the successful launch of these ETFs largely hinges on the U.S. Securities and Exchange Commission (SEC) granting accelerated approval.
Should this approval occur, it could have a notable impact on the demand for Ethereum, potentially driving up its price.