Crypto: Ethereum Threatened by a Massive Sale of 420,000 ETH - Cointribune

The Binance hack continues to worry crypto investors as investigators monitor assets that hackers might resell. The amount is significant: more than 420,000 ETH, plus 18,270 BTC, representing about $2.4 billion as of October 30. These cryptos lack a central issuer to block them, allowing hackers to move them freely across different wallets and exchanges.

The October 29 attack affected Binance wallets across ten blockchains, stealing approximately $6.36 billion in about twenty minutes. TRM Labs attributes the operation to the TraderTraitor group, linked to North Korea, which the FBI has also designated as responsible for the theft.

Hackers Converted Stablecoins

Part of the 420,000 ETH came directly from compromised Binance wallets, with TRM Labs identifying about 200,630 ETH stolen on the Ethereum network. The hackers also converted stolen stablecoins into Ethereum through decentralized trading services. About $325 million USDT were exchanged for 122,300 ETH through UniswapX at unfavorable prices around $2,650 per ETH, while the market traded between $2,300 and $2,350.

Liquidity Concerns

A large ETH sale alone isn't enough to cause a collapse; market conditions matter. Analysts note shallow order books and spreads between bid and ask prices that can be five times larger, increasing transaction costs. This becomes more pronounced when multiple sellers act simultaneously, potentially pressuring Ethereum through November and December.

Ethereum reserves on exchanges fell to 14.88 million ETH in September, with 6.42 million ETH leaving platforms since July 2025. The 420,000 ETH represents about 2.8% of these September reserves, though these don't correspond to actual order book liquidity.

Binance Recovery

Binance continues recovery operations, announcing it has replaced 95% of affected assets as of November 1, mobilizing over $6.34 billion from its own funds, SAFU protection fund, and futures insurance fund. The exchange plans to gradually resume withdrawals starting November 1, with Ethereum, Bitcoin, and Solana included in the first phase.

Binance's replenishment doesn't mean hackers returned the stolen funds; the platform replaces missing assets with its own resources. The remaining 5% mostly concerns less liquid tokens that may take longer to acquire without impacting prices.

Mixed Signals

Despite the threat, some investors see buying opportunities. Ethereum's RSI entered oversold territory on October 31 for the first time since June, potentially signaling excessive selling. Binance's financial commitment to cover losses may also reassure investors about the exchange's strength.

However, risks persist as some stolen funds are already moving between addresses. Investigators monitor transfers to exchange protocols and cross-chain bridges, though transfers may serve to consolidate assets rather than prepare sales. The next hacker transfers will be decisive for Ethereum's near-term trajectory.