20k ETH Swapped, Tanks Ethereum 7%

Since Saturday, the price of Ethereum has dropped by 7% as the FTX drainer continues to cash out for Bitcoin via Ren bridge after accumulating over 250,000 ETH.

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The Ethereum address labeled “FTX Accounts Drainer” has attracted a great deal of attention from the crypto community as it amassed over 250,000 ETH ($303 million at the time) on Saturday, becoming the 27th largest Ethereum holder.

The individual or entity behind the mysterious wallet is using the Ren crypto bridge to move funds to the Bitcoin network. The alleged exploiter trades Ether for renBTC, a form of wrapped Bitcoin issued by Ren, and then bridges it via Ren BTC Gateway to the Bitcoin blockchain.

According to blockchain tracker PeckShieldAlert, FTX Drainer swapped 20,000 ETH ($22.4 million) for 1,023 renBTC ($16.3 million) on Monday, having previously exchanged 50,000 ETH for 3,517 renBTC on Sunday. At press time, the wallet holds 185,735 ETH ($207 million) and drops to the 43rd largest holder of ETH.

Due to the increased price pressure caused by heavy selling, Ethereum has dropped 7.6% since Saturday. It has broken the $1,200 support level and is currently trading at around $1,120.

The identity of FTX Drainer remains a mystery. While some initially speculated that the wallet belongs to the Bahamas’ securities regulator, others believe that the massive outflow of funds is an inside job, especially in the light of the recent report by Reuters that affirmed that Sam Bankman-Fried planted a “backdoor” in FTX's book-keeping system. So far, no one has claimed ownership of the suspicious wallet.