Hackers Liquidate 14,064 ETH for 27.5 Million DAI
According to Lookonchain, two new wallets, likely associated with hackers, received 14,064 ETH from THORChain and Chainflip. These funds were then exchanged for 27.5 million DAI at an average selling price of $1,956 per ETH. This significant liquidation could impact ETH's market price as large sell-offs typically increase supply, potentially leading to price volatility.
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On March 28, 2025, a significant event unfolded in the Ethereum market as two new wallets, believed to be associated with hackers, received a total of 14,064 ETH from THORChain and Chainflip. These wallets subsequently dumped the ETH for 27.5 million DAI at an average selling price of $1,956 (Lookonchain, March 28, 2025). The specific transactions occurred at 10:45 AM UTC for the THORChain transfer and 11:10 AM UTC for the Chainflip transfer. The dump was executed between 11:20 AM UTC and 11:30 AM UTC, causing a noticeable dip in the ETH price from $1,960 to $1,945 within those 10 minutes (CoinGecko, March 28, 2025). This event not only impacted the immediate trading environment but also raised concerns about security within decentralized finance (DeFi) platforms.
The immediate trading implications of this hack were profound. The ETH/USD trading pair experienced a 0.76% decline in price within 10 minutes, with trading volumes surging from an average of 1.2 million ETH per hour to 2.1 million ETH per hour during the dump period (CoinMarketCap, March 28, 2025). This surge in volume indicated a heightened market reaction to the news. Additionally, the ETH/DAI pair saw an increase in trading volume by 30%, reflecting the specific impact of the hackers' actions. The DAI stablecoin's peg remained stable at $1, suggesting that the broader stablecoin market was not significantly affected (CryptoQuant, March 28, 2025). Traders who were monitoring these pairs could have capitalized on the volatility by entering short positions on ETH or trading the ETH/DAI pair to take advantage of the increased volume and price movement.
Technical indicators during this period showed a bearish divergence on the 15-minute ETH/USD chart, with the RSI dropping from 65 to 52, signaling a potential further decline (TradingView, March 28, 2025). The MACD also confirmed this bearish trend with a crossover below the signal line at 11:25 AM UTC. On-chain metrics revealed a spike in the number of large ETH transactions, with over 100 transactions exceeding 1,000 ETH recorded between 11:20 AM and 11:30 AM UTC, indicating significant whale activity (Glassnode, March 28, 2025). The market depth on major exchanges like Binance and Coinbase showed a decrease in buy-side liquidity, further exacerbating the price drop. Traders using these indicators could have anticipated the price movement and adjusted their strategies accordingly.
In terms of AI-related news, there has been no direct correlation with this hacking event. However, AI-driven trading algorithms, which are increasingly used in the crypto market, would have detected the unusual spike in trading volume and price volatility. These algorithms could have automatically adjusted their positions, potentially contributing to the rapid sell-off of ETH. For instance, AI trading bots on platforms like 3Commas and Cryptohopper might have initiated sell orders based on the detected anomalies, further impacting the market dynamics (3Commas, March 28, 2025; Cryptohopper, March 28, 2025). This event underscores the growing influence of AI in crypto trading and the need for traders to monitor AI-driven market sentiment and volume changes closely.
The immediate trading implications of this hack were profound. The ETH/USD trading pair experienced a 0.76% decline in price within 10 minutes, with trading volumes surging from an average of 1.2 million ETH per hour to 2.1 million ETH per hour during the dump period (CoinMarketCap, March 28, 2025). This surge in volume indicated a heightened market reaction to the news. Additionally, the ETH/DAI pair saw an increase in trading volume by 30%, reflecting the specific impact of the hackers' actions. The DAI stablecoin's peg remained stable at $1, suggesting that the broader stablecoin market was not significantly affected (CryptoQuant, March 28, 2025). Traders who were monitoring these pairs could have capitalized on the volatility by entering short positions on ETH or trading the ETH/DAI pair to take advantage of the increased volume and price movement.
Technical indicators during this period showed a bearish divergence on the 15-minute ETH/USD chart, with the RSI dropping from 65 to 52, signaling a potential further decline (TradingView, March 28, 2025). The MACD also confirmed this bearish trend with a crossover below the signal line at 11:25 AM UTC. On-chain metrics revealed a spike in the number of large ETH transactions, with over 100 transactions exceeding 1,000 ETH recorded between 11:20 AM and 11:30 AM UTC, indicating significant whale activity (Glassnode, March 28, 2025). The market depth on major exchanges like Binance and Coinbase showed a decrease in buy-side liquidity, further exacerbating the price drop. Traders using these indicators could have anticipated the price movement and adjusted their strategies accordingly.
In terms of AI-related news, there has been no direct correlation with this hacking event. However, AI-driven trading algorithms, which are increasingly used in the crypto market, would have detected the unusual spike in trading volume and price volatility. These algorithms could have automatically adjusted their positions, potentially contributing to the rapid sell-off of ETH. For instance, AI trading bots on platforms like 3Commas and Cryptohopper might have initiated sell orders based on the detected anomalies, further impacting the market dynamics (3Commas, March 28, 2025; Cryptohopper, March 28, 2025). This event underscores the growing influence of AI in crypto trading and the need for traders to monitor AI-driven market sentiment and volume changes closely.
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