Once again, the Ethereum stolen from the UpBit exchange is on the move. In November last year, the platform lost exactly fifty million dollars in ETH just by a hacking attack. The details of this particular incident are still unknown. Some even claim that it was an internal platform problem. UpBit promised to compensate the affected clients as much as possible.
ETH is still in motion again
The stolen Ethereum was tracked down by an @whale.alert. They announced on Saturday the transfer of exactly 5,000 ETHs with a total value of $660,000. The funds were transferred to a wallet of unknown origin.
As the NewsBTC portal points out to us, it is a single and large transaction related to these very funds that can be more harmful to the network than it seems. According to the analysis of the portal itself, the already mentioned 5000 ETH is broken down into smaller portions. The funds are then sent to addresses that belong to cryptic exchanges. So far, part of the amount has been liquidated on exactly three exchanges. These are Bibox and Binance. The last exchange has not yet been identified.
⚠ 5,000 #ETH (662,239 USD) of stolen funds transferred from Upbit Hack Nov 2019 to unknown wallet
— Whale Alert (@whale_alert) January 4, 2020
The remaining millions of dollars are in the possession of hackers after the non-listed portfolios. They’re probably waiting for the right moment to liquidate the funds.
What does that mean for the Ethereum price?
Hackers who send their funds to the stock exchanges certainly count on one of exactly two possibilities. It’s either to swap for another cryptic or to liquidate the ETH. When it comes to conversion to another cryptocurrency, it can be directly a change to digital assets, which increase the anonymity of the transaction itself. According to the already mentioned NewsBTC portal, for one of the most popular cryptocurrencies it means nothing else but really big sales pressure. During this process we may witness a drop in the price of ETH.
As the authors point out, 600 000 thousand dollars, in the context of the whole ETH market, is not a dizzying amount. Nevertheless, these measures are a harbinger of much larger quantities of Ether, which can be sold at any time.
Chainalysis, an analytical company that specializes in digital assets, revealed that several million dollars directly from the PlusToken scandal have not yet been sold by fraudsters. Over the past few months, PlusToken has probably been actively influencing the BTC market itself by disposing of the funds it has accumulated.
In the case of UpBit, it is certainly very encouraging that Binance is, however, from the world’s largest possible stock exchanges. It does not remain passive. Its CEO, Changpeng Zhao, has announced his cooperation with the platform in order to freeze ETHs sent from endangered portfolios.
If you are also interested in the UpBit case itself, then we certainly encourage you to read many other entries.