TLDR
- Hacker wallets sold 8,638 ETH for $3,764, then bought back at $4,159.
- Ethereum’s price drop and rebound caused a $5.5 million loss for hackers.
- Over $10 billion in crypto liquidations occurred during October’s market collapse.
- The crypto market recovered quickly, with ETH reaching $4,100 post-crash.
During a significant market crash in October 2025, hacker-linked wallets sold and repurchased Ethereum (ETH) in a series of transactions that resulted in an estimated loss of $5.5 million. The trades took place during a massive liquidation event triggered by new U.S. tariffs on China. The market suffered one of its largest liquidations in history, which saw over $10 billion in positions wiped out.
Ethereum Dumped During Market Collapse
On October 10, 2025, as the crypto market experienced a sharp decline, wallets tagged as belonging to hackers sold 8,638 ETH for $3,764 each. The total value of this sale amounted to approximately $32.5 million.
The sale occurred during a market-wide liquidation event, which was caused by a sudden and aggressive 100% tariff announced by the White House on China. This move triggered widespread panic in the markets and led to a cascade of liquidations across digital assets.
According to on-chain analytics provider Lookonchain, the hacker wallets were part of the $10 billion liquidation event. These wallets, labeled as belonging to hackers by Arkham, dumped their Ethereum holdings at a lower price to avoid further losses in a volatile market. This move highlights the vulnerability of digital asset holders, especially those linked to illicit activities, when facing extreme market fluctuations.
Recovery and Rebuying of Ethereum
After the market experienced a rebound, the same hacker-linked wallets quickly repurchased a substantial amount of Ethereum. On October 13, 2025, the wallets acquired 7,816 ETH at a price of $4,159 each, nearly matching the original sale value of $32.5 million. The price of ETH had recovered from the steep drop, and the wallets seized the opportunity to buy back a significant amount of ETH at a higher price.
However, this move resulted in a loss. The hackers had initially sold their holdings at $3,764 per ETH and bought them back at $4,159. The difference in prices, combined with the amount of Ethereum involved, led to an estimated $5.5 million loss, as per Lookonchain’s analysis. This loss reflects the volatility of the crypto market and the risks associated with such high-stakes trading, particularly in a market driven by external events like political announcements.
Market Context and Liquidation Events
The liquidation event that affected these hacker-linked wallets was part of a broader market downturn that occurred following the announcement of new U.S. tariffs on China. On October 10, 2025, the crypto market saw a decline of more than 9%, with some reports estimating that forced liquidations exceeded $19 billion. Centralized exchanges faced criticism for underreporting the extent of the rout, which has been described as the largest in crypto history.
As the market continued to absorb the shock, assets like Bitcoin and Ethereum began to recover. By the time of the transactions detailed by Lookonchain, Bitcoin had risen above $114,000 and Ethereum had climbed back to $4,100. This recovery shows the volatility and rapid shifts that digital assets can experience, even during periods of extreme price drops.
