Bybit Hacker Becomes Major ETH Holder, Potentially Impacting Ether’s Supply
Ether is trading 2% higher as the massive stash of stolen ETH is now seen as effectively removed from circulation.
The hacker behind the Bybit exploit, allegedly linked to a North Korean entity, has become one of the largest individual ether holders—an event that could have bullish implications for ETH’s price.
Data from Arkham Intelligence and Coinbase executive Connor Grogan reveals that the hacker currently controls 489,000 ETH, worth approximately $1.34 billion. This represents around 0.4% of the total ether supply, making them the 14th-largest ETH holder globally—ranking ahead of the Ethereum Foundation, Ethereum co-founder Vitalik Buterin, and asset management giant Fidelity.
However, these hacked funds are unlikely to be easily liquidated. Addresses tied to the attacker have been blacklisted by major exchanges, significantly limiting the ability to offload such a large amount of ETH into the market.
Essentially, this means that a substantial portion of ether’s supply is now considered lost. Meanwhile, Bybit, which has reportedly secured a bridge loan from undisclosed partners to cover nearly 80% of the stolen funds, may still need to acquire a significant amount of ETH from the open market.
“As far as this supply is concerned, it’s essentially gone. No OTC desk or exchange will facilitate the movement of such a large amount. Meanwhile, Bybit is short 402k ETH. The bridge loan may cover immediate needs, but purchasing will still be necessary,” said Vance Spencer, co-founder of crypto VC firm Framework Ventures, in a post on X.
This supply shock may be fueling ether’s recent price recovery, with ETH rebounding 2.6% to $2,730 from an overnight low of $2,614. Additionally, perpetual futures funding rates remain positive, signaling that traders maintain a long bias on ETH, according to data from Coingecko.
