Last week’s massive crypto crash not only hit traders, it also wiped out millions in stolen funds held by hackers who, caught in a panic, misread the market with disastrous timing.
Blockchain detective Lookonchain tracked at least six wallets linked to known hackers who lost more than $13.4 million after panic selling ether. during the recession.
The hackers in question appear to be part of a group of cybercriminals who have recently engaged in cryptocurrency thefts. The mention of “6 hacker wallets” losing more than $13.4 million suggests a coordinated effort, possibly linked to a known hacking syndicate.
Buy high, sell low
The selloff began when a wallet unloaded 7,816 ETH at $3,728 per coin, a move that coincided with the steepest part of the crash. As prices fell further, five other wallets followed suit, contributing to the broader dumping of the market.
However, rather than holding the sold assets in stablecoins or attempting to launder ETH, the hackers bought back the same amount – 7,816 ETH – at $4,159 as markets rebounded, locking in a new round of losses.
On October 18, blockchain analysis revealed that the total loss due to these trading missteps reached $13.4 million.
Given the scale of the funds (around $29 million in the latest transaction alone), these hackers are likely sophisticated actors with access to advanced tools to exploit vulnerabilities in decentralized finance (DeFi) protocols, exchanges, or smart contracts.
Panic sale
Hackers’ trading patterns in volatile market conditions suggest that while they are accustomed to exploiting ecosystem players, they react to market fluctuations like any other overleveraged trader would: with poor timing and emotional decision-making.
Lookonchain called this behavior “panic selling,” while some crypto observers even joked that the attackers could be “great hackers, terrible traders.”
It wasn’t all their money
However, the hackers likely acquired these funds through a hack. So even if the losses are real, the funds were probably not earned but stolen.
Blockchain analysts believe the ETH comes from previous attacks, meaning the hackers were trading with assets they did not initially purchase.
In this sense, the losses might not be as severe as they would be for ordinary traders.
Think of it this way: someone finds a suitcase full of money, plays badly, and leaves empty-handed. Their situation is worse than before, but they do not pay for it, since the money they lost did not belong to them in the first place.
Maybe the hacker group should have stuck with the hacking and maybe started looking for a wallet manager for the criminals. Still, the missteps reveal something about the current state of the crypto landscape. Even the most sophisticated attackers can buckle under pressure.
Washing business
There is another possibility. Even if they were “terrible traders,” they may also have laundered their ill-gotten gains from these trades, strategically dumping corrupt funds during the panic and then repurchasing equity, even at a loss.
As one poster
The October 10 market correction affected traders across the board, triggered by a combination of macroeconomic pressures and diminishing liquidity in decentralized markets that led to a $500 billion crisis.
While hacks and exploits are typically viewed in isolation, the past week’s developments show how blockchain markets, by design, apply the same rules to everyone: whether they’re retail traders, whales, or hackers.
