Crypto Hacker Dumps 26,347 ETH for 45.36M DAI in 12 Hours

A crypto hacker, previously involved in a Coinbase exploit, has once again stirred the crypto markets by converting 26,347 ETH, valued at $68.18 million, into DAI within a span of 12 hours. The rapid-fire series of transactions spanned several blocks and liquidated the ETH on average at a price of $2,587.77 per ETH. After this mass dump, the attacker is left with $45.36M in DAI in two wallets.

The hacker's decision to convert a significant amount of ETH into DAI suggests a strategic move to stabilize their holdings and potentially re-enter the ETH market at a later date. DAI, being a stablecoin, provides a hedge against the volatility of cryptocurrencies, allowing the hacker to preserve their capital while waiting for more favorable market conditions. This strategy is not uncommon among crypto traders and investors, who often use stablecoins to manage risk and optimize their investment strategies.

As indicated by real-time blockchain monitoring, the attacker did this huge dump through the CoW Protocol decentralized settlement solution. The latest transaction involved the hacker selling an additional 4,863 ETH at the rate of $2,569 per ETH, or 12.5M DAI. Previous crypto trades were achieved in batches of 1,000 to 2,000 ETH. The hacker has traded using two particular wallets. Both addresses were identified as having received ETH via THORChain and subsequently observed to interact with the settlement contracts of CoW Protocol to dump ETH into stablecoins.

This purchase of ETH was strange because, on May 22, the same hacker had sold the stolen ETH at a price of more than $45M with each ETH coin being priced at $2,558. And yet he returned the same evening and purchased 207.17 ETH with 536,000 DAI and again today he purchased 4,863 ETH at an average price of $2,569. Analysts noticed such a transaction and wrote it down as a strange behavior that may represent either a test of crypto market manipulation or an overall calculated long-term action.

The incident is one more reminder of the skill behind crypto-related attacks in the modern day. Users and platforms await the next move as the hacker moves through blockchain anonymity with remarkable speed and ease. The hacker's ability to execute such a large-scale conversion within a short period underscores the need for enhanced security measures and regulatory frameworks to protect against similar incidents in the future.

The crypto community has been closely monitoring the hacker's activities, with many speculating about their next move. Some analysts believe that the hacker may attempt to re-enter the ETH market by converting their DAI holdings back into ETH, potentially driving up the price of the cryptocurrency. However, others caution that the hacker's actions could also lead to increased market volatility and uncertainty, as investors react to the potential impact on the market.

The incident serves as a reminder of the importance of due diligence and risk management in the crypto space. Investors are advised to stay informed about the latest developments and trends in the market, and to take appropriate measures to protect their investments. This includes diversifying their portfolios, using secure wallets and exchanges, and staying vigilant against potential scams and exploits. By taking these steps, investors can better navigate the complexities of the crypto market and minimize their exposure to risks.