The Bybit Hacker: A Major Player in the Ether Market
The recent developments surrounding the Bybit hacker, who is believed to be linked to North Korea, have raised significant concerns within the cryptocurrency community. This entity has now emerged as one of the largest holders of ether, with potentially bullish implications for the cryptocurrency’s market price.
According to analysis from Arkham Intelligence and insights shared by Connor Grogan, an executive at Coinbase, this malicious actor possesses an astonishing 489,000 ETH, which is valued at approximately $1.34 billion. This amount accounts for about 0.4% of the total ether supply, positioning the hacker as the 14th-largest ether holder globally. Notably, this individual now surpasses esteemed entities such as the Ethereum Foundation, Ethereum’s co-founder Vitalik Buterin, and Fidelity.
It is crucial to recognize that the blockchain addresses associated with this hacker are under close scrutiny and have been blacklisted by various exchanges. This situation implies that the hacker will likely face significant challenges in attempting to liquidate these coins on the open market. In essence, it can be concluded that a substantial portion of this hacked ether supply is likely irretrievable, effectively rendering it lost forever.
Furthermore, Bybit, the exchange affected by the hack, has reportedly secured a bridged loan from unnamed partners to cover nearly 80% of the ether lost during the recent incident. However, the exchange may still need to acquire additional coins from the market to fulfill its obligations. According to Vance Spencer, co-founder of the crypto venture capital firm Framework Ventures, “As far as this supply is concerned, it’s essentially gone. No OTC desk or exchange will facilitate the movement of such a large amount. Meanwhile, Bybit is short 402k ETH. The bridge loan may cover immediate needs, but purchasing will still be necessary.”
This context likely explains the recent market activity, where ether has bounced back by 2.6%, rising to $2,730 from an overnight low of approximately $2,614. Additionally, funding rates in perpetual futures tied to ether remain positive, indicating a prevailing bias towards long positions, as reported by data source Coingecko.
