- A North Korean Hacking entity now controls 489,000 ETH ($1.34 billion), becoming the 14th largest Ethereum holder globally.
- The Hacker‘s holdings exceed those of the Ethereum Foundation, Vitalik Buterin, and Fidelity.
- The stolen funds are effectively locked due to exchange blacklists, potentially removing this supply permanently from circulation.
- Bybit has secured bridge loans to cover 80% of the stolen Ethereum but may need to purchase additional coins.
- ethereum’s price has shown resilience, bouncing 2.6% to $2,730 despite the hack.
A suspected North Korean hacker has become one of the largest Ethereum holders following a significant security breach at cryptocurrency exchange Bybit, potentially creating an unexpected supply squeeze in the market.
According to Arkham Intelligence data, the hacker now controls 489,000 ETH, representing approximately 0.4% of Ethereum’s total supply. This positions the malicious actor as the 14th largest Ethereum holder globally, surpassing established institutions including the Ethereum Foundation, founder Vitalik Buterin, and investment giant Fidelity.
The situation creates an unusual market dynamic as major cryptocurrency exchanges have blacklisted the hacker’s addresses, effectively creating a “dead supply” of Ethereum tokens. Framework Ventures co-founder Vance Spencer explained on X: “As far as this supply is concerned, it’s essentially gone. No OTC desk or exchange will facilitate the movement of such a large amount.”
Meanwhile, Bybit has DeFi/bybit-loan-to-cover-ethereum-losses-from-record-crypto-hack/”>secured bridge loans to cover approximately 80% of the stolen Ethereum. However, market analysts suggest the exchange will likely need to purchase additional ETH to fully restore its positions, potentially creating upward price pressure.
The market has responded positively to these developments, with Ethereum’s price recovering from $2,614 to $2,730, representing a 2.6% increase. Data from Coingecko shows positive funding rates in Ethereum perpetual futures, indicating traders maintain a bullish outlook despite the security incident.
For context, cryptocurrency hacks involving permanent loss of tokens have historically led to supply constraints, occasionally resulting in price appreciation. This dynamic was previously observed following the Mt. Gox hack in 2014, where lost Bitcoin became permanently inaccessible, effectively reducing the available supply.
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