A controversial wallet, widely linked to one of the most significant hacks in the cryptocurrency market, has recently become active again. On-chain data indicates that the hacker responsible for pilfering over $300 million from Coinbase users has now taken a directional bet on Ethereum (ETH), going “long” on the asset. The wallet reportedly associated with the attacker acquired 649.62 ETH, valued at approximately $2.31 million, at an average price of $3,561. This move follows a month-long period of money laundering and signals that the perpetrator is now anticipating a significant upside for Ethereum. This strategic investment by the hacker comes as Ether’s price has already jumped by an impressive 26% over the past seven days, reflecting strong bullish momentum.
Whale Activity and Ethereum’s Price Surge
Further data shared by Lookonchain reveals that the same Coinbase hacker wallet added a substantial 4,863 Ethereum, worth approximately $12.55 million, on July 7 at an average price of $2,581. This accumulation contrasts with a previous move two months ago, when the exploiter sold 26,762 ETH, valued at around $69.25 million, when it was trading at approximately $2,588. The influx of capital into Ethereum is not limited to this infamous wallet. Two newly created institutional-grade wallets recently purchased a combined 58,268 ETH, estimated to be worth $212 million, with the accumulation executed via prominent platforms FalconX and Galaxy Digital.
On the other side of the market, a well-known whale wallet (0xd5ff) closed a long ETH position just hours ago, locking in a substantial $1.7 million profit. Over the past four days, this same address executed six profitable ETH long trades, accumulating a total profit nearing $3 million. Ethereum, the largest altcoin by market capitalization, is riding this bullish wave effectively, having posted gains of more than 125% in the last 90 days, currently trading at an average price of $3,705 at press time, with its 24-hour trading volume hovering around $30 billion.
Accelerating Institutional Appetite for Ethereum
The institutional appetite for Ethereum continues to accelerate, a trend evidenced by significant inflows into Ether-linked US ETFs. On Friday, these ETFs recorded a massive $402.5 million inflow, remarkably outpacing Bitcoin‘s inflows of $363.45 million for the same period. BlackRock’s ETHA fund alone accounted for a staggering $394.91 million of that total, underscoring its dominant position in the market. While Fidelity’s FETH and Grayscale’s ETHE recorded modest outflows, the overall picture points to robust institutional interest. Ether ETF trading volumes hit $2.8 billion, and the total assets under management for Ether products surged to a record $18.37 billion, reflecting growing confidence and investment from institutional players.
Inside Coinbase’s $300 Million ETH Heist
The Coinbase hack itself remains one of the most controversial incidents of 2025. On-chain investigator ZachXBT initially reported that the attacker converted $42.5 million worth of stolen Bitcoin into Ethereum via Thorchain. The hacker then further obscured the trail by converting nearly 18,000 ETH into over $45 million in DAI stablecoins. The breach reportedly originated from a sophisticated social engineering scheme, where hackers bribed external contractors and support employees located outside the United States. This allowed them to gain unauthorized access to sensitive user data, impacting an estimated 97,000 Coinbase accounts.
While user login credentials were not compromised, personal details such as names, addresses, and emails were exposed. Coinbase has publicly pledged to reimburse affected users and is in the process of estimating the total damages. Notably, the company reportedly refused to meet the attacker’s $20 million ransom demand, highlighting their commitment to not negotiating with criminals.
The Interplay of Illicit Activity and Market Dynamics
The hacker’s decision to go long on Ethereum, despite their illicit gains, highlights a curious intersection of criminal activity and market speculation. While the funds were obtained illegally, the subsequent investment reflects a calculated bet on Ethereum’s price appreciation, mirroring the strategies of legitimate investors. This incident, while troubling, also underscores the increasing transparency of on-chain data, which allows investigators and analysts to track and trace illicit funds, even when attempts are made to obfuscate their origins.
The large institutional inflows into Ethereum ETFs, occurring concurrently with this hacker activity, further illustrate the diverse motivations and participants currently shaping the Ethereum market. The ongoing efforts by Coinbase to address the fallout from the hack and the broader industry’s focus on enhancing security measures are critical for building trust and ensuring the long-term integrity of the cryptocurrency ecosystem.
