Bybit Hacker Becomes Major ETH Holder, Driving Supply Shock and Price Surge
Ether has climbed 2% as traders consider the stolen ETH effectively removed from circulation, tightening supply and boosting market sentiment.
The hacker behind the massive Bybit exploit—suspected to be a North Korean-linked entity—now ranks among the largest ether holders in the world, a situation that could influence ETH’s price dynamics moving forward.
Data from Arkham Intelligence and Coinbase’s Connor Grogan confirms that the attacker controls 489,000 ETH, worth around $1.34 billion. This stash represents approximately 0.4% of the total ether supply, making the hacker the 14th-largest ETH holder—outranking the Ethereum Foundation, Vitalik Buterin, and even Fidelity.
Despite this vast holding, liquidating the funds will be nearly impossible. Exchanges have blacklisted the associated addresses, meaning the hacker is unable to cash out, effectively locking up a significant portion of ETH’s supply indefinitely.
Bybit, meanwhile, has secured a bridge loan covering nearly 80% of the stolen ether, but the exchange may still need to acquire additional ETH to fully offset losses.
“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 Framework Ventures, on X.
This perceived supply reduction appears to be fueling ETH’s recent gains, with prices rebounding 2.6% to $2,730 from an overnight low of $2,614. Additionally, data from Coingecko shows that perpetual futures funding rates remain positive, signaling that traders are leaning bullish.
