[Analysis] DeFi Hacker Dumps $2M in Crypto Amid Extreme Fear Market

• Wallet linked to Indexed Finance and KyberSwap hacks sells $2 million in UNI, LINK, CRV, and YFI tokens after one year of dormancy
• Activity coincides with "Extreme Fear" market sentiment (23/100) and Bitcoin testing $87,287 support
• U.S. prosecutors identified Canadian national Andean Medjedovic as perpetrator of $65 million combined exploits
• Market structure suggests potential liquidity grab during institutional outflow period

NEW YORK, December 30, 2025 — An address associated with the hacker behind the Indexed Finance and KyberSwap exploits has moved approximately $2 million in cryptocurrency assets after remaining dormant for approximately one year, according to on-chain data from analytics firm Lookonchain. This latest crypto news emerges as the broader market experiences "Extreme Fear" sentiment with Bitcoin testing critical support at $87,287, representing a 3.20% decline over the past 24 hours.

Market Context & Background

Market structure suggests this activity represents more than simple profit-taking. The timing coincides with multiple bearish signals across cryptocurrency markets, including six consecutive days of U.S. Bitcoin ETF outflows and four days of Ethereum ETF outflows. According to data from the Federal Reserve, traditional financial markets have shown increased volatility following recent monetary policy decisions, creating cross-market pressure on digital assets. The hacker's decision to exit positions during this specific window raises questions about market timing intelligence versus random chance. Historical patterns indicate that large, dormant wallets often move during periods of maximum pain for retail investors, creating what technical analysts call a "Liquidity Grab" at key psychological levels.

Related Developments:

• U.S. Bitcoin ETF outflows have continued for six consecutive sessions
• Ethereum ETF outflows have persisted for four days as price tests support
• Bitcoin futures liquidations reached $82 million amid extreme fear conditions

What Happened?

According to on-chain data reported by CryptoBriefing, the wallet in question executed sales of UNI, LINK, CRV, and YFI tokens over an eight-hour period. U.S. prosecutors have previously identified Canadian national Andean Medjedovic as the individual behind both the 2021 Indexed Finance hack and the 2023 KyberSwap exploit. He was indicted for stealing an estimated $65 million from the two incidents and remains at large. The timing of this activity—precisely when market sentiment registers "Extreme Fear" at 23/100 on the Fear & Greed Index—creates a suspicious correlation that demands scrutiny. Market analysts question whether this represents coordinated exit strategy or mere coincidence.

Technical Analysis & Price Action

Volume Profile analysis indicates the hacker's sales occurred near what technical traders would identify as a "Fair Value Gap" (FVG) in the affected tokens. The $87,287 Bitcoin level represents a critical Fibonacci retracement zone (61.8% from recent highs), making this price point a magnet for both long and short positions. RSI readings across major altcoins, including those sold by the hacker, show oversold conditions below 30, suggesting potential for a technical bounce if selling pressure abates. The 200-day moving average for Bitcoin currently sits at $84,500, providing additional context for the broader market structure. Bullish invalidation for this narrative would be Bitcoin breaking below the $84,500 200-day MA with conviction. Bearish invalidation would be a swift recovery above $90,000 with increased volume, suggesting the hacker's sales were absorbed without structural damage.

By The Numbers

Why It Matters

For institutional investors, this event highlights the persistent security vulnerabilities in DeFi protocols and the challenges of asset recovery. The movement of stolen funds during periods of market stress creates additional selling pressure that can exacerbate downturns. For retail traders, the psychological impact of seeing a notorious hacker exit positions during "Extreme Fear" conditions may trigger panic selling at precisely the wrong moment. The broader implication involves regulatory scrutiny: if hackers can time market exits this precisely, it suggests either sophisticated market analysis capabilities or potential information advantages that regulators at the SEC may investigate.

Community Sentiment

Market analysts on social media platforms have expressed skepticism about the timing. One prominent trader noted, "The correlation between extreme fear sentiment and dormant hacker wallet activity is statistically improbable without some form of coordination or market intelligence." Others have pointed to the specific token selection—UNI, LINK, CRV, and YFI—as targeting assets with relatively liquid markets but significant retail holder bases, maximizing the psychological impact of the sales.

Price Prediction / Future Outlook

Bullish Case: If the hacker's sales represent a final capitulation event, and Bitcoin holds the $87,287 Fibonacci support with increasing volume, we could see a relief rally toward $92,000 as oversold conditions correct. The extreme fear reading often precedes short-term bounces when combined with technical support levels.

Bearish Case: If this selling represents the beginning of further hacker wallet liquidations, and Bitcoin breaks below the 200-day MA at $84,500, we could see accelerated declines toward $80,000. The combination of institutional outflows, hacker selling, and extreme fear sentiment could create a negative feedback loop that tests lower support levels.

FAQs

1. Who is behind the Indexed Finance and KyberSwap hacks?U.S. prosecutors have identified Canadian national Andean Medjedovic as the perpetrator. He was indicted for stealing approximately $65 million and remains a fugitive.

2. What tokens did the hacker sell?The wallet sold UNI, LINK, CRV, and YFI tokens totaling approximately $2 million in value over an eight-hour period.

3. Why does this matter for Bitcoin price?While the sales were in altcoins, the timing during "Extreme Fear" sentiment and Bitcoin testing key support at $87,287 creates psychological pressure that can affect broader market structure.

4. What is the current market sentiment?The Crypto Fear & Greed Index registers "Extreme Fear" at 23/100, with Bitcoin down 3.20% to $87,287.

5. Could this trigger more regulatory action?The precise timing of hacker wallet activity during market stress may attract regulatory scrutiny regarding market manipulation and the security of DeFi protocols.

Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.