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FTX hacker becomes 35th largest ETH holder; Crypto.com faces flak too

After nearly $600 million was stolen from FTX’s wallets last Friday, multiple wallet addresses connected to the alleged hacker transferred more than 21,555 ETH, worth nearly $26 million at the time of writing, to a single wallet on Tuesday morning. 

These tokens were later converted to DAI using CowSwap, a coin-swapping service according to the blockchain data. Over multiple transactions, these linked addresses collected over $48 million in DAI, swapping it into 37,000 ETH. The final address now holds upwards of 288,000 ETH, making it the 35th largest ETH holding address. 

Another 7,420 BNB tokens stolen from the exchange were also converted into 1,500 ETH using BNB chain-based exchange PancakeSwap. The swapped ETH was then bridged to the Ethereum network. 

The exploit took place on Friday, shortly after FTX filed for bankruptcy, saying it had between $10 billion and $50 billion in assets and liabilities. Following FTX’s collapse and its rescue deal with Binance falling out, Solana DeFi applications have lost more than $700 million in value, with losses mounting in billions of dollars for investors and customers of the sunk exchange.

The havoc this has caused is quickly spreading across the crypto industry. Binance announced a rescue fund for “otherwise strong” exchanges otherwise facing liquidity problems, and major exchanges are shutting down withdrawals as they await clarity on FTX’s situation.

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Crypto.com to follow in FTX’s footsteps?

The effects have reached Crypto.com as well, whose customers fear that it might follow in FTX’s footsteps. The exchange has laid off nearly a quarter of its staff in the last few months, and concerns have been mounting since FTX’s collapse.

The fact that it accidentally sent more than 80% of its ETH holdings, equalling nearly $400 million, to Gate.io also didn’t help. Additionally, Crypto.com’s native token CRO had dropped 40% in the last week, a similar sign to FTX’s collapse, whose FTT token also dropped heavily shortly before the chaos ensued at the exchange.

CEO Kris Marszalek is doing what he can to pacify the situation, tweeting that the withdraw queue is down by 98% and that “it remains business as usual” at the exchange.

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