- Ethereum experienced a dip on Friday following sell-offs linked to hacker-related wallets.
- The wallets are allegedly tied to recent scam attacks on users of a major crypto exchange, resulting in $46 million being stolen.
- A surge in February’s PCE inflation data also intensified ETH losses.
On Friday, Ethereum (ETH) fell below the $2,000 mark after a wave of hacks connected to accounts of users of a prominent crypto exchange led to a $36 million loss. The perpetrators transferred the tokens to Ether via ThorChain and liquidated 14,064 ETH, totaling approximately $27.5 million. Furthermore, the US Bureau of Economic Analysis reported an increase in the core Personal Consumption Expenditure (PCE) price index for February, triggering a broader downturn across the cryptocurrency market.
ETH dips under $2,000 as hackers trigger rapid sell-offs
Ethereum fell 6% on Friday as malicious actors executed a series of transactions that involved dumping numerous ETH tokens. Some transactions were linked to recently compromised accounts on the exchange, where one user lost 400.09 Bitcoin (BTC), valued at $34.9 million, according to blockchain investigator ZachXBT.
ZachXBT suggested that this theft was part of a broader pattern of hacks targeting the exchange, resulting in a total of $46 million in losses. The stolen funds were moved from Bitcoin to Ethereum using bridges like Thorchain and Chainflip—tools often utilized by hacking groups such as the Lazarus Group from North Korea—before being swapped for the DAI stablecoin.
The hackers ultimately sold off 14,064 ETH, worth $27.5 million for DAI, which induced a wave of panic selling among investors.
Moreover, the Core PCE inflation data for February jumped to 2.8% year-over-year, exceeding market predictions of 2.7%. This inflation report combined with the recent hacker sell-offs created turmoil among investors, deepening ETH’s losses. According to data from Coinglass, derivatives traders faced $136.52 million in liquidations within the past 24 hours.
The leading altcoin has now fallen below the crucial $2,000 mark, trading at $1,890 at the time of this report.