Coinbase Hackers Suffer $13.4M Loss in Ethereum Panic-Selling During Market Crash
In a dramatic turn of events during the recent cryptocurrency market downturn, six hacker-controlled wallets linked to a previous Coinbase theft have suffered massive losses totaling $13.4 million due to panic-selling of Ethereum. According to blockchain analytics firm Lookonchain, the incident occurred during Friday's market slump when the group sold 7,816 ETH worth approximately $29.14 million at an average price of $3,728 per token. This forced liquidation resulted in the hackers locking in losses of $3.37 million on these specific trades alone. The wallets had originally acquired 9,240 ETH at a much higher price point of $4,269 per token, indicating they were caught in the market downturn and made the decision to sell at a significant loss. This development serves as a stark reminder of the volatility inherent in cryptocurrency markets and how even those who obtain digital assets through illicit means are not immune to market forces. The incident highlights the importance of proper risk management and the dangers of panic-selling during market corrections. For legitimate investors, this case demonstrates that while cryptocurrency markets can experience sharp downturns, maintaining a long-term perspective and avoiding emotional decision-making during periods of market stress is crucial for success in the digital asset space.
Hacker Wallets Lose $13.4M in Ethereum Panic-Selling Amid Market Downturn
Six hacker-controlled wallets linked to a Coinbase theft suffered losses exceeding $13.4 million after panic-selling Ethereum during Friday's crypto market slump. Blockchain analytics firm Lookonchain reported the group sold 7,816 ETH worth $29.14 million at an average price of $3,728, locking in $3.37 million in losses on these trades alone.
The wallets had previously purchased 9,240 ETH at $4,269 per token, totaling $39.45 million. When prices tumbled, they offloaded 8,638 ETH at $3,764, realizing $5.5 million in losses. The series of poorly timed transactions—buying high during price spikes and selling low amid volatility—demonstrates how even sophisticated actors can fall victim to emotional trading during market turbulence.
Arkham Intelligence data reveals the hackers repeatedly entered positions at local tops and exited in capitulation. The episode underscores Ethereum's liquidity as both a blessing and curse: while large positions can be moved quickly, rapid execution during panic often compounds losses.
Bitcoin Coinbase Premium Drops as U.S. Investors Retreat Amid Trade Tensions
Bitcoin's Coinbase Premium Index, a key metric tracking the price disparity between Coinbase and global exchanges, turned negative early Friday. The shift reflects waning demand from U.S. traders after institutional buying drove the premium to 0.18 last week amid Bitcoin's rally toward $110,000.
The reversal came as Leveraged positions unwound following Bitcoin's failure to hold above $110,000, triggering a slide to $103,500 before partial recovery. Market sentiment soured further after the Trump administration announced 25% tariffs on Chinese heavy-duty trucks, prompting Beijing to retaliate with rare earth export restrictions.
Technical pressure mounted as Bitcoin faced rejection at the short-term holder realized price of $112,370. The rare earth confrontation proved particularly disruptive—China controls 97% of global processing capacity, making export curbs a systemic risk catalyst that accelerated crypto outflows.
