An individual associated with a significant crypto crime from two years ago has taken advantage of a sudden decrease in Ethereum pricing by converting around $40 million worth of the stablecoin DAI into Ethereum.
The hacker exchanged DAI for about 17,000 Ethereum tokens during a decline in pricing and subsequently transferred these tokens in multiple transactions to Tornado Cash, a privacy-oriented service. Notwithstanding this acquisition, Ethereum has seen difficulties in its recovery as a result of continuous selling pressures exerted by prominent corporations.
According to DeFi Mochi, a market researcher, the significant decrease in Ethereum’s value can be attributed primarily to the sale of its assets by major investment institutions.
Paradigm, a venture capital firm, divested a substantial amount of its Ethereum holdings, while Grayscale decreased its Ethereum assets through its recently authorized exchange-traded fund in the United States.
Jump Trading, a prominent market maker, has allegedly divested more than $500 million worth of Ethereum amidst speculation about withdrawing from the cryptocurrency market.
Investments in digital assets, such as bitcoin ETFs and trusts, had significant outflows of over $500 million, marking the first large decline in over a month. This was mostly due to concerns about a potential U.S. recession, geopolitical tensions, and liquidations in several asset categories.
The United States saw the largest outflows, with Germany and Hong Kong also seeing losses. Investors capitalized on reduced prices to acquire additional assets, resulting in positive inflows for Canada and Switzerland.
