The Sale of hacked funds from FTX bleeds the price of ETH

This week starts with losses for Ethereum (ETH). In the last 24 hours, the second most important cryptocurrency in the market plummeted more than 8%. The crypto market is red, and the pressure from the FTX crash on November 11 has become more intense for ETH.

ETH prices saw a significant drawdown falling to a multi-week low of $1084 at the time of writing [CoinMarketCap].

This weekend, the massive selling pressure of the funds stolen from the FTX exchange house was seen. Several on-chain monitors have detected ETH activity related to the FTX debacle.

On Sunday, the 20th, the alleged FTX hacker mobilized 27 million dollars in ETH to the Wrapped Tokens wBTC and RenBTC. According to analysts, there is still $270 million worth of ETH in the main wallet.

But crypto whales react to ETH price drops due to FTX chaos. Therefore, they are actively accumulating ETH. Hence, whales have moved almost 400K ETH from various exchanges, and nearly $445 million was transferred to unknown wallets despite the price drop.

The possible identity behind the FTX hack is revealed

Though, Bahamian authorities may have ordered the alleged FTX hack. This Sunday, they revealed that they took control of the company FTX Digital Markets (FDM) funds in the country. Thus, according to the official statement, they transferred the money to a wallet under their control.

The Bahamian institution added that FDM is not part of FTX’s bankruptcy filing in the United States, so its procedure is valid.

After the transfer, they exchanged the FTX Digital Markets funds for ETH. Investigators estimate that the Bahamas administration holds more than $338 million. Thus, the authorities of the Bahamas became one of the largest holders of ETH in the world.

Institutional adoption deepens

Despite the turmoil in the crypto market and the selling pressure that the FTX hack caused in ETH, institutional adoption took a big step forward this week. JP Morgan, the largest bank in the United States, registered a patent for its own cryptocurrency wallet.

Thus, the financial entity registered on November 15 the ‘JP MORGAN WALLET,’ a wallet that will allow the transfer and exchange of crypto assets, payment processing, virtual checking accounts, and financial services.

JP Morgan joins American Express a Visa, among traditional financial giants that have entered the cryptocurrency market this year. 

Judging by the movement of the whales and the financial giants, the fall in the prices of cryptocurrencies such as ETH due to the FTX hack seems to favor the traditional financial sector in its attempt to adapt crypto technology to its interests.

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