Hackers Lose $13.4 Million in Ethereum Panic Sell

Six hacker wallets linked to a Coinbase theft incurred losses exceeding $13.4 million by buying Ethereum (ETH) at high prices and selling low. These losses stem from panic-selling during a market drop, confirmed by Lookonchain analytics and blockchain sleuths.

In a notable incident, six hacker-controlled wallets lost over $13.4 million due to Ethereum trading mishaps, following a large-scale theft associated with Coinbase. This event was publicly tracked by blockchain analytics firm Lookonchain and corroborated on the platform X (Twitter).

Panic Selling Under Pressure

Affected wallets, linked to a major Coinbase theft , were observed panic-selling Ethereum at substantially lower prices than purchased. On-chain analysts such as Lookonchain provided transaction details and confirmed significant liquidations.

“These hackers panic-sold 7,816 $ETH($29.14M) at $3,728 during the market drop, losing another $3.37M! In total, 6 hacker wallets have lost over $13.4M recently from buying high and selling low on $ETH!” — Lookonchain

These actions result in substantial financial repercussions within decentralized finance structures. By acquiring 9,240 ETH and selling at losses, hackers unintentionally impacted short-term liquidity. The losses demonstrate the complex challenges of market timing.

Regulatory Implications and Risks

Analysts noted the lack of regulatory response by major institutions following the incident. As these are illicit funds making their way through DeFi transactions, the immediate regulatory impact remains non-existent, although potential longer-term implications are still debated.

The $13.4 million loss paints a cautionary tale of the difficulties in managing stolen digital assets. Blockchain intelligence indicates previous usage of swap protocols aimed to obscure funds. These events emphasize the persistence of DeFi risks, driven purely by market conditions and flawed judgement.