TLDR
- Six hacker wallets lost $13.4M by panic-selling ETH during the Oct. 10 crash.
- Hackers sold 7,816 ETH at $3,728 and rebought at $4,159, locking in losses.
- Blockchain shows hackers reacted emotionally like regular traders during crash.
- The ETH involved was linked to past exploits and not acquired through trading.
Six hacker wallets sold ETH during the crypto crash on October 10, locking in heavy losses and rebuying at higher prices. They lost over $13.4 million due to poor timing. Though linked to past exploits, their recent moves suggest they traded under pressure like any other market participant. Blockchain data shows they sold low and bought high, exposing a lack of trading skill despite their history of technical exploits.
Panic Selling During October 10 Market Crash
During the sharp drop in crypto prices on October 10, six hacker-linked wallets sold large amounts of Ethereum (ETH) at low prices. One wallet started the sell-off by dumping 7,816 ETH at around $3,728 per coin. Other wallets followed, selling during one of the steepest points of the decline.
According to blockchain tracking platform Lookonchain, the hackers quickly re-entered the market. They bought the same amount of ETH — 7,816 coins — back at $4,159 each. This move led to a confirmed loss of over $13.4 million, as the assets were repurchased at a higher price.
Losses Reveal Poor Trading Strategy
The six wallets are believed to be connected to known hacking groups that previously drained funds from decentralized finance (DeFi) platforms. Despite their experience with exploiting systems, their trading actions during the crash showed poor strategy and timing.
Rather than securing the ETH in stablecoins or attempting to launder funds through mixers or other tools, they reacted quickly and emotionally to the crash. As the market started to rebound, they repurchased at higher prices. Analysts say this behavior mirrors the mistakes of inexperienced traders.
Possible Money Laundering Tactic
Some blockchain analysts believe the activity may not be a simple trading mistake. A few observers pointed out that this could be a form of on-chain laundering. The hackers may have sold compromised funds during the market chaos, then repurchased new ETH to “clean” their holdings.
One post on X said, “It’s a form of money laundering. While they are puking, on the other side, they are buying. Then they reverse after it rises.” This tactic would result in a loss of some value, but the ETH would no longer be directly linked to prior thefts.
Not Out-of-Pocket, But Still at a Loss
The hackers were not using personal savings or income. Instead, they were moving and risking stolen digital assets. Even though they lost millions, they were trading with funds taken from previous exploits. This means they are not financially ruined, but the value of their holdings did fall.
Blockchain analysts note that the lost ETH likely came from earlier DeFi hacks or smart contract vulnerabilities. While the funds were not earned, the loss still reflects how quickly poor decisions can erase large holdings — even for sophisticated actors.
Market Crash Exposed Trading Weakness
The October 10 market crash triggered over $500 billion in losses across digital assets. Liquidity dried up, and leveraged positions were liquidated. Even large players and whales suffered. In this case, the transparency of blockchain allowed anyone to track how the hackers responded during the downturn.
Lookonchain said the hackers‘ behavior shows “panic selling,” and the phrase “great hackers, terrible traders” spread quickly on social media. Their trading moves showed how on-chain markets apply the same rules to all — whether retail investors or cybercriminals.
Their poor timing and re-entry at a higher price turned into a costly mistake. It suggests that while they may be skilled in exploiting code, they are not immune to pressure or poor decision-making during volatile times.
