**Hackers Lose $13.4 Million in Crypto Market Crash as Panic Selling Takes Over**

The recent crypto market crash didn’t just affect everyday investors — even cybercriminals got burned. Over the past few days, six hacker wallets suffered losses of more than $13.4 million due to panic selling during Ethereum’s sharp price drop.

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**Hackers Panic Sell During Ethereum Crash**

According to on-chain data from blockchain analytics platforms, hackers sold 7,816 ETH at an average price of $3,728, totaling around $29.1 million. But they ended up losing an additional $3.37 million by selling in a rush during the price dip.

This isn’t the first time these wallets made costly moves. Just a week earlier, the same group had purchased 9,240 ETH for about $39.45 million. As prices started to fall, they quickly sold 8,638 ETH for only $32.5 million — taking a loss of $5.5 million. These panic-driven trades have added up to over $13 million in total losses for these hacker wallets.

The pattern is clear: these wallets tend to buy when prices are rising and sell when prices fall, often at a loss. Blockchain data shows they bought back 7,816 ETH after their earlier sale — only to dump them again when the market dropped.

Some of these wallets moved millions through CoW Protocol using Ethereum and DAI stablecoins. One transaction alone involved swapping 6.9 million DAI for 1,815 ETH in multiple parts.

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**Red Friday Hits Crypto Hard**

The market downturn, referred to by analysts as another “Red Friday,” hit Ethereum especially hard. One wallet tied to a major hack of 400 BTC (worth about $35 million) on Coinbase also saw losses during this crash. That same wallet had converted some stolen Bitcoin into Ethereum back in October, but now it’s among those suffering from the latest price plunge.

Ethereum ended the week down 22% from its all-time high of $4,900. According to data from Coinglass, $269 million worth of long ETH positions were liquidated on Friday alone — a sign that many traders were caught off guard by the decline.

Technical analysis from groups like Catalyst shows that Ethereum has broken below a key support level called a descending triangle, which usually signals more bearish movement ahead.

This marks the second Friday in a row where over $100 billion flowed out of the crypto market. Over the last week, Ethereum dropped 1.5%, and Bitcoin fell by 6.2%, briefly touching $103,850 before bouncing back to $106,000.

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**Too Much Leverage Fuels Volatility**

CryptoQuant analyst Amr Tah noted that open interest in futures markets rose by 30% last week — suggesting more people were betting on price movements with borrowed money. This kind of leverage can make gains bigger but also causes steeper losses when prices fall.

Meanwhile, negative funding rates on platforms like Binance suggest that more traders are betting heavily on further drops — a sign that sentiment remains bearish.

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**Key Takeaways for Crypto Investors**

This latest wave of panic selling shows that even experienced hackers and algorithmic traders can fall victim to fear in volatile markets. With Ethereum and other cryptocurrencies experiencing sharp movements and heavy leverage in play, the risks are high.

Investors should be extra careful in the coming weeks. Avoid making emotional decisions and consider the dangers of trading with borrowed money. Crypto remains a highly unpredictable space — even for those who think they know how to play the game.

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