A hacker who exploited a vulnerability in the FTX crypto exchange and stole nearly 50,000 ETH last week has been moving the funds to various destinations, according to Spot On Chain data. The hacker, identified as 0x3e9, has transferred over 10,000 ETH, worth about $17 million, in the past 24 hours through five different addresses.
🚨 FTX Exploiter 0x3e9 has transferred out a total of 10,250 $ETH ($17.1M) via 5 addresses over the past 24 hours:
– sent 7,749 $ETH ($13M) to the Thorchain router and Railgun contract
– swapped 2,500 $ETH ($4.19M) to 153.4 $tBTC at $27,281 on avg
Notably, the address has been… https://t.co/xzmDz8Vmma pic.twitter.com/4Ykp0zih6G
— Spot On Chain (@spotonchain) October 1, 2023
Some of the ETH was sent to the THORChain router and Railgun contract, while some were swapped for tBTC, a Bitcoin-backed token on Ethereum. The hacker’s activity comes amid the anticipation of the launch of Ethereum futures ETFs in the US, which could boost the demand and price of ETH.
The FTX exploit occurred on September 30, when the hacker exploited a bug in the exchange’s smart contract that allowed them to withdraw more funds than they deposited. The hacker managed to withdraw 49,999.99 ETH, worth about $84 million at the time, from the exchange’s hot wallet.
FTX Took Quick Action Against the Exploiter
The exploit was quickly detected and stopped by the FTX team, who assured users that their funds were safe and that the exchange would cover the losses. The team also offered a $10 million bounty for any information that could lead to the recovery of the stolen funds or the identification of the hacker.
The exploit did not have a significant impact on the Ethereum price, which has been trading above $1,700 in anticipation of the launch of Ethereum futures ETFs. According to Bloomberg analysts, the US Securities and Exchange Commission (SEC) may approve several Ether futures ETFs as early as next week.
Ether futures ETFs are products that track the price of Ether futures contracts traded on regulated exchanges such as CME. They offer investors exposure to the second-largest cryptocurrency without having to buy or store it directly. They also have lower fees and tax advantages compared to other crypto products.
If approved, Ether futures ETFs could attract more institutional and retail investors to the Ethereum ecosystem, increasing its liquidity and adoption. They could also provide a hedge against volatility and inflation in traditional markets. Some of the companies that have filed for Ether futures ETFs include VanEck, ProShares, Grayscale, Bitwise, and Direxion.
