FTX is making headlines once again. Earlier on November 20, whoever was responsible for the $600 million FTX hack began trading millions of dollars worth of Ethereum (ETH) in exchange for Ren Bitcoin (renBTC). Ren BTC represents Bitcoin on the Ren Blockchain. Here are the details…
Hacker sells Ethereum (ETH)
The second-largest cryptocurrency by market cap seems to be caught in the recent FTX-Alameda drama. According to market analysts, the hack was orchestrated by an insider. According to some, today’s token exchange supports this point of view. The use of RenBTC surprises some in the crypto community. This is because of the link between renBTC tokens and Alameda Research.
A significant number of crypto investors do not believe that FTX was hacked during the current crisis. The hack occurred at a time when the crypto exchange was trying to explain what was going on. According to reports, the hacker stole $600 million from the stock market. This money started to circulate in the crypto ecosystem.
Today, the hacker traded 347 renBTC for 5,000 ETH. RenBTC is a type of wrapped Bitcoin that can be used for Bitcoin on Ethereum. According to blockchain tracker PeckShieldAlert, the hacker then made a second trade for almost the same value for 344.53 renBTC. As of writing, approximately 45,000 ETH has been sold.
Link between RenBTC and FTX, Alameda
The use of RenBTC surprises some in the crypto community. Alameda Research, the trading arm owned by Sam Bankman-Fried that was at the center of a multi-billion dollar scam, stated that in 2021 Ren’s development team “joined” Alameda. He announced that Ren will make an effort to expand its use to many blockchains. On-chain inspection of the wallet reveals that the hacker started converting ETH to renBTC using the decentralized exchange 1inch.
The first of these transactions was the conversion of 4,000 ETH to wrapped Bitcoin (wBTC) and then to renBTC. According to information provided by security firm PeckShield, the hacker used the Rhine bridge to transfer thousands of renBTC. Bridges are Blockchain-based solutions that enable token exchange between networks. The Rhine bridge provides users with anonymity. That’s why it has been used to launder at least $540 million in stolen funds so far, according to blockchain analysis firm Elliptic.
Did recent transactions affect Ethereum price?
After days of buying and selling cryptocurrencies withdrawn for ETH, the actions of the attacker using the wallet named “FTX Accounts Drainer” brought Ethereum badly to the agenda. The constant selling pressure from the hacker has negatively impacted the coin. The price declined slightly below $1,200. It is currently hovering around $1,160. Despite the big sale, the wallet called “FTX Accounts Drainer” on Etherscan is still the 37th largest ETH holder. It was in the top 30 before the sale started.
What to expect from the crypto market in the coming days?
Currently, the hacker’s address controls more than 100,000 Ethereums. Therefore, the liquidation of Ethereum carries the risk of stretching the market. According to some, investors are waiting for another dreadful week due to the extreme volatility of the cryptocurrency market. However, it is worth noting that Bitcoin, the largest cryptocurrency, does not exhibit volatile price movements. Conversely, the coin is moving around the $17,000 level.
According to several arguments, if the hacker decides to cash out all the Ethereum, this will cause fear. This leads to the worst crypto winter at the end of 2022. FTX has continued to dominate crypto news over the past week. It’s unclear whether the increases caused by events like the 2022 FIFA World Cup will continue. Elon Musk, who can influence the crypto space, on the other hand, decided on Sunday to lift the Twitter ban of former US President Donald Trump. So what this week will show depends on the time.
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