**Six Hacker Wallets Lose $13.4M by Panic-Selling ETH During October 10 Market Crash**
During the sharp crypto price crash on October 10, six wallets linked to hacker groups sold large amounts of Ethereum (ETH) at low prices, locking in heavy losses. Blockchain data shows these hackers sold 7,816 ETH at around $3,728 per coin and then repurchased the same amount at $4,159 each, resulting in a confirmed loss of over $13.4 million.
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### Panic Selling Amid Market Chaos
The October 10 crypto market crash triggered massive sell-offs and wiped out over $500 billion in digital asset value. Liquidity dried up, and many leveraged positions were liquidated. Amid this downturn, the six hacker wallets reacted emotionally, much like regular traders facing volatile market conditions.
One wallet initiated the sell-off by dumping 7,816 ETH during one of the steepest points of decline. Other hacker-linked wallets quickly followed. However, as the market began to rebound, these wallets bought back the same amount of ETH at higher prices, effectively locking in a significant loss.
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### Poor Trading Strategy Revealed
Despite their technical expertise in exploiting decentralized finance (DeFi) platforms and smart contract vulnerabilities, these hackers demonstrated poor trading decisions. Rather than safeguarding their stolen ETH by converting it to stablecoins or using privacy tools such as mixers, they sold during the crash and repurchased at a higher price.
This behavior mirrors the common mistakes made by inexperienced traders, exposing that even skilled hackers are not immune to panic and pressured decision-making during extreme market volatility.
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### Possible Money Laundering Tactic?
Some blockchain analysts suggest that this pattern of selling low and buying high may not be just a simple trading error. It could be a form of on-chain money laundering: selling compromised funds during market chaos to sever direct links to prior thefts, then rebuying new ETH to “clean” their holdings.
One social media post on X described it as follows:
*“It’s a form of money laundering. While they are puking, on the other side, they are buying. Then they reverse after it rises.”*
Although this strategy results in a financial loss, it helps hackers obscure the origin of stolen assets.
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### Not Out-of-Pocket, But Still at a Loss
It’s important to note that the hackers were not trading with personal income or savings. Instead, they were moving stolen digital assets accumulated from previous exploits. While the losses of over $13 million are significant, the hackers are not financially ruined — the value of their ill-gotten ETH simply declined due to poor timing.
Blockchain analysis confirms that the lost ETH mostly originated from earlier DeFi hacks or smart contract vulnerabilities, reiterating how even ill-gotten funds are vulnerable to market risks and bad decision-making.
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### Market Crash Exposes Trading Weaknesses
The transparent nature of blockchain allowed analysts and the public to track these wallets’ activity in real time during the market downturn. Lookonchain described the behavior as “panic selling,” and the phrase “great hackers, terrible traders” quickly trended on social media.
This episode highlights that the same market rules and pressures apply equally to all participants, whether retail investors, institutional players, or cybercriminals. Despite their hacking prowess, these wallets’ poor timing—selling low and buying high—resulted in costly mistakes during a volatile crypto environment.
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**Conclusion**
The October 10 crypto crash not only inflicted losses across the market but also revealed trading vulnerabilities among hacker groups. While technically savvy at exploiting blockchain systems, these actors were emotionally driven during the crash, underscoring how pressure and volatility can undermine even the most sophisticated participants in the digital asset space.
https://coincentral.com/hackers-lost-13m-in-eth-after-panic-selling-and-rebuying-at-higher-prices/
