From Hacker to Financial Flop: How a $7M ETH Trading Disaster Unfolded
Another day, another crypto cautionary tale—this one starring a hacker who thought he could outsmart the market. Spoiler: He couldn't.
The $7M Faceplant
Some digital bandits are better at breaking systems than reading charts. Case in point: An alleged fraudster just incinerated $7 million trading ETH—proving even criminals aren't immune to crypto's brutal learning curve.
Market Karma Strikes Back
The decentralized ledger giveth, and the decentralized ledger taketh away. After allegedly acquiring funds through shady means, our would-be wolf of Wall Street watched helplessly as leveraged positions and ill-timed trades vaporized his stack. Who needs regulators when volatility does the job for free?
Finance's great equalizer strikes again—turns out stealing doesn't teach risk management. Maybe he should've YOLO'd into memecoins like the rest of us degens.
Hackers Are Not Savvy Traders
Lookonchain, a popular blockchain analysis firm, noted the activity early this morning on its account on the social media platform X.
The wallet in question, which, according to the analysts is linked to illicit hacking activities, received 12,282 ethereum (ETH) three months ago, valued at around $23.72 million at that time, and sold it at $1,932 per coin.
Earlier today, the same culprit purchased 4,958 ETH at $2,495, totaling $ 12.37 million.
This results in a de-facto loss of around $6.9 million, as noted by Lookonchain.
It’s Not Just Cybercriminals Out Of Luck
As CryptoPotato reported yesterday, it’s not just bad actors that wind up out of pocket.
We noted two separate instances in which two traders, cumulatively, lost multiple millions on very high-risk, overleveraged trades.
Both were testing their luck with 40x and even 50x leverage, only to see their positions shrink as the markets did not turn in their favor.
One tried one too many times to come on top, and the other one failed to realize a significant profit.
This just goes to show that testing fate can quickly lead to an enormous shortfall, regardless of the trader’s intention and the manner in which the funds used for the transactions were obtained.
