Warning: FTX Hacker Stacking ETH, Whale Holding Reduced

The scars of the FTX collapse last week still continue to exist in the crypto market. The FTX hacker, who reportedly stole $600 million worth of assets from the exchange, has been selling all other stolen assets and amassing ETH in massive quantities.

This could serve as a warning bell for Ethereum investors as the hacker could possibly dump all of the Ethereum to cash out. Popular crypto analyst Dylan LeClair recently wrote:

The FTX exploiter, who has been dumping all other drained assets for ETH, is now one of the largest holders in the world, with 228,523 ETH ($284.82m) currently in their wallet. Everyone should keep an extremely close eye on what happens next…

The FTX exploiter address has been converting all other assets such as $PAXG, $DAI, etc. into ETH over a series of multiple transactions. As of now, a staggering 95% of the address’s assets are in ETH and a very small percentage i.e 5% is in $PAXG stablecoin.

On-chain data provider Santiment reported: “This #FTX exploiter address has received funds from 100+ different addresses, with the largest being a total of 100,614 $ETH from address 0x9008d19f58aabd9ed0d60971565aa8510560ab41. 

Ethereum ETH Whale Holdings on A Decline

Another cautious signal for Ethereum investors is that the ETH whale holdings have been on a decline. The supply among the top whale addresses has dropped to a nine-month low. As per on-chain data provider Santiment:

Ethereum’s 100k+ $ETH addresses have dropped their collective holdings significantly since Nov 4th. Likely related to #FTX address shuffling, this blue line has correlated somewhat with price. But it may be anomalous under these unique circumstances.

As the FTX crisis unfolded, Ethereum (ETH) has already faced a major blow correcting more than 25% over the last week. If another major dump comes ahead, ETH could probably tank all the way to $1,000 and even below.