The FTX hacker is now one of the world’s largest owners of ethereum

The FTX hacker is now one of the world’s largest owners of ethereum

Representation of Ethereum cryptocurrency is seen in this illustration photo taken in Sulkowice, Poland on August 12, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

Ethereum cryptocurrency. Photo: Jakub Porzycki/NurPhoto/Getty

The hacker of bankrupt cryptocurrency exchange FTX is now one of the world’s largest owners of ethereum, with a stolen haul worth an estimated $288 million at current market prices.

The hack happened on Friday night after FTX’s bankruptcy filing. The FTX exchange was drained of more than $663 million in a variety of crypto assets, according to blockchain intelligence firm Elliptic.

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The crypto wallet address that has drained hundreds of millions of dollars worth of digital assets from FTX can be seen on the blockchain, and the majority of the funds are denominated in ether (ETH-USD), ethereum’s native cryptocurrency.

Blockchain security services company Beosin found that there are over $338 million in stolen digital assets in the hacker’s wallet, and of this total, nearly $289 million is in ether.

Fears that a large amount of ethereum may soon be dumped on the market and cause a rapid devaluation of the cryptocurrency should be balanced with the risk involved for the hacker if they were to perform such an action.

The blockchain is transparent, and a quick check of Etherscan, the register of transfers on the chain, will show exactly where ethereum was sent from and who the recipient was.

Ethereum hacked from FTX dumped on the market will be located and can then be returned to the beleaguered exchange, which has gone into administration.

Read more: Crypto thoughts after FTX implosion

The hacker may have no other option but to place the large amount of ethereum in cold storage, which can be good for the value of ether as it reduces the amount for sale on the market.

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After Friday night’s hack, an FTX Support Telegram group admin said: “FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Do not access the FTX website as it may download trojans.”

Hours after the attack, FTX general counsel Ryne Miller tweeted that the crypto exchange was making “every effort to secure all assets, wherever they are located”.

And days after the hack, Crypto analytics firm Certik tweeted that the hacked wallet is still there drainage crypto assets from wallets linked to the beleaguered FTX exchange.

The US Securities and Exchange Commission (SEC) has now put FTX founder Sam Bankman-Fried under investigation and the crypto exchange is facing criminal charges in the Bahamas.

Amid the current drama, the blue chips at the top of the cryptocurrency market are bleeding out, with bitcoin (BTC-USD) down nearly 10% in value over the past seven days, to a muted $16,867.

Ethereum fell nearly 6.5% in the past week to a low of $1,233.

See: US Senator: ‘Digital assets will be as big as the internet itself’ | Crypto Mile

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