Ethereum News Today: Theft Turned Investment: How a Hacker’s ETH Bet Paid Off Big

The hacker behind the October 2024 Radiant Capital exploit—where $58 million in assets were stolen—has seen their ill-gotten gains grow into a $103 million position in Ether (ETH) following the cryptocurrency’s price surge. The perpetrator converted the proceeds into 21,957 ETH at an average price of $2,414 per coin in the aftermath of the breach. With Ethereum trading above $4,000 in late August 2025, the attacker now holds the equivalent of $103 million in ETH, a nearly 78% increase in value since the incident occurred [1].

The Radiant Capital breach occurred on BNB Chain and Arbitrum, and the attack exploited vulnerabilities in the cross-chain lending protocol’s smart contracts. The incident highlighted the ongoing challenges of securing DeFi infrastructure despite its growing adoption. According to blockchain forensics firm AMLBot, the hacker's decision to hold ETH was more likely driven by operational security and liquidity considerations rather than a calculated investment strategy [1]. This aligns with broader patterns observed in the laundering and conversion of illicit crypto assets, where Bitcoin and Ethereum are favored due to their widespread support, liquidity, and resistance to freezes.

Ether’s price appreciation since mid-2024 has been attributed to multiple factors, including the launch of U.S. spot Ether ETFs in late July 2024, which have drawn $12.12 billion in net inflows. These ETFs have contributed to reduced supply on exchanges as more Ether is being staked or locked away in institutional portfolios. As of mid-August 2025, the amount of Ether staked exceeded 36 million ETH, a record high that reflects growing confidence in the asset’s long-term utility and security model [1]. Additionally, corporate treasuries continue to accumulate Ether, with reports indicating that companies hold over $100 billion worth of the token, further stabilizing demand.

Another significant factor in Ethereum’s price trajectory is the regulatory environment. In June 2024, the U.S. Securities and Exchange Commission (SEC) dropped its investigation into whether Ether qualifies as a security. Legal experts interpreted this move as a sign that the agency lacked sufficient evidence to classify ETH as an investment contract, which could open the door for broader adoption by regulated financial institutions [1]. Coupled with Ethereum’s Dencun upgrade in mid-2024—introducing EIP 4844 and enhancing network scalability—these developments have contributed to a more robust and efficient blockchain environment.

Despite these tailwinds, Ethereum faces near-term volatility as investors assess market sentiment. A recent Ethereum whale opened a $16.35 million long position at $4,229.83 per ETH, using 25x leverage, betting on a rebound above $4,300 [2]. Technical indicators suggest that ETH is forming a bullish pattern, with key support levels aligning with the 20-day EMA and falling wedge patterns. However, a drop below $4,140 could invalidate the setup and trigger losses for leveraged positions.

The broader crypto ecosystem is also shifting toward decentralized finance (DeFi) as institutional investors seek transparency and operational continuity. In 2025, DeFi’s total value locked (TVL) exceeded $159 billion, an 84% increase from the previous four months. This growth outpaces centralized finance (CeFi) platforms, which have struggled to recover from past collapses like Celsius and BlockFi. DeFi protocols such as Aave and Lido have demonstrated resilience, with TVL surpassing $40 billion and $42 billion respectively. Meanwhile, CeFi lending platforms have seen their loan books drop to roughly $11–13 billion by early 2025, significantly below their 2022 peak of $34.8 billion [5].

Source: [1] ETH rally turns Radiant Capital exploit into $103M trade (https://cointelegraph.com/news/the-53m-hacked-away-from-radiant-capital-become-102-5m-with-ether-rising) [2] Ethereum whale opens $16.3M long as ETH price eyes bounce (https://cointelegraph.com/news/ethereum-whale-opens-16-3m-long-as-eth-price-eyes-bounce) [5] DeFi vs CeFi 2025: Why Smart Money Picks DeFi Despite Risk (https://mooloo.net/articles/news/defi-vs-cefi-2025-why-smart-money-picks-defi-despite-risk/)