Bitrabo Editorial
Reports reveal that a wallet associated with a significant cryptocurrency theft from two years ago converted $39.75 million DAI into 16,892 Ethereum (ETH) tokens amid a 23% drop in value on Monday.
Cybercriminal Seizes Opportunity Amidst Ethereum’s Fall
The individual responsible for a 2022 attack on Nomad, stealing nearly $200 million in cryptocurrency, took advantage of reduced ETH prices to exchange some of the stolen funds for ETH tokens.
Data on the blockchain indicates that following the transaction, the hacker transferred the tokens in batches to Tornado Cash, a service known for its privacy features and suspected use in laundering illicit cryptocurrency proceeds.
Despite attempts at recovery, formidable selling activity hindered the rebound of the second-largest cryptocurrency as major corporations contributed to the downward trend.
Analyst DeFi Mochi attributed the ETH price plummet to large investment firms capitulating. Reports suggest that Paradigm sold 46,000 ETH valued at $138 million at $3,000, while Grayscale shed 372,000 ETH worth $1.1 billion through its recently authorized Ethereum exchange-traded fund (ETF) in the US.
Furthermore, market player Jump Trading liquidated over $500 million in Ethereum following rumors of its potential exit from the cryptocurrency market maker sector.
ETFs Witness $430 Million in Overall Outflows
The latest data from CoinShares reveals substantial outflows from digital asset investment products after over a month without significant activity, totaling $528 million last week.
Market fears of a US recession, geopolitical uncertainties, and broader asset sell-offs prompted this response. Trading volumes for these products declined, representing only 25% of the total cryptocurrency market activity.
Most outflows were observed in the US, with $531 million, while Germany and Hong Kong saw outflows of $12 million and $27 million, respectively.
In contrast, Canada and Switzerland experienced inflows of $17 million and $28 million, possibly capitalizing on the market downturn.
Etherem saw outflows of $146 million, with net outflows reaching $430 million since the launch of Ethereum ETFs in the US. Notably, new US ETFs recorded $430 million in inflows last week, offset by $603 million outflows from the Grayscale Trust.
At present, Ethereum has recuperated to the $2,450 mark, registering a 28% decline over the past week and a 31% drop in the last two weeks despite this recent modest rally.
Image source: DALL-E, chart by TradingView.com