$300 Million Coinbase Hacker Returns to Ethereum With Major New Buys

TLDR

Table of Contents

Hacker-linked wallets bought 5,512.62 ETH in July, totaling over $14.8 million in stablecoins.
ETH wallet still holds $45.36 million in Dai, signaling potential for further large purchases.
Ethereum price surpassed $3,700 amid rising leveraged retail interest and high funding rates.
CoW Protocol used for ETH trades, reducing slippage and limiting public visibility of transactions.

A crypto wallet tied to the hacker who stole over $300 million in a past Coinbase breach has suddenly become active again. After months of silence, the wallet is now buying large amounts of Ethereum (ETH). These recent trades have caught attention as they coincide with Ethereum’s latest price surge above $3,700 and rising market activity from both retail and institutional traders.

Hacker-Linked Wallet Returns With Large Ethereum Purchases

A wallet associated with the $300 million Coinbase hack has resumed trading activity on the Ethereum network. Blockchain data shows that two major ETH purchases took place this month. On July 7, the wallet acquired 4,863 ETH using about $12.5 million in stablecoins. More recently, on July 19, another 649.62 ETH was purchased for $2.31 million.

The average purchase price across both transactions appears to be lower than Ethereum’s current market value. With ETH now above $3,700, the wallet is currently holding an unrealized profit. The ETH trades were processed through CoW Protocol, which helps reduce slippage and limits visibility on traditional trading platforms.

The wallet still holds over $45 million in stablecoins, mostly in Dai, spread across two addresses. Analysts believe the wallet could be preparing for more Ethereum purchases if favorable market conditions continue. Monitoring platforms have flagged the wallet’s growing activity as a key trend amid recent ETH movements.

Ethereum Price Rises With Leverage and Trading Volume

Ethereum’s price crossed the $3,700 mark for the first time this year. This upward trend has been supported by a mix of retail and institutional trading. Retail participants have been using leverage through perpetual contracts, betting on further ETH gains. This surge in leveraged activity has also pushed funding rates higher across major exchanges.

Institutional players are using delta-neutral strategies to profit from these funding rates. These strategies involve shorting ETH perpetual contracts while holding spot positions, allowing them to earn the fees without taking a directional risk. While these trades support liquidity, they rely on continued interest from leveraged buyers.

Market analysts report that liquidity now depends more on leveraged trades than on regular spot buying. This creates a trading environment that can change quickly if retail demand drops or if funding rates begin to fall. As long as funding remains positive, liquidity providers may stay active, but any shift could lead to fast price corrections.

Structural Risks Grow as Leverage Drives Ethereum Market

The Ethereum derivatives market is becoming more complex due to its connections with decentralized finance (DeFi) platforms. ETH is widely used as collateral in protocols like Ethena and Pendle. Many traders are using these systems to borrow or earn yields, often leveraging their positions further.

This setup increases the risk of rapid price changes if leveraged trades are liquidated. A sudden drop in ETH price could force users to repay loans or sell assets quickly. This could remove liquidity from both centralized and decentralized exchanges.

The rising Ethereum price is being supported by leveraged strategies rather than spot market demand. While this has driven prices up, it also increases the chance of sharp corrections if market conditions shift. With the hacker’s wallet now active and holding large amounts of stablecoins, further large-scale ETH buys remain possible in the coming days. Blockchain watchers continue to track the wallet’s next move.

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