KelpDAO Exploiter Reportedly Swaps Nearly All 75,700 ETH Into BTC
The wallet linked to the KelpDAO exploit has reportedly converted nearly all of its 75,700 ETH holdings into Bitcoin BTC +0.00% , representing one of the largest single cross-asset rotations tied to a security incident in recent memory.
What the reported 75,700 ETH-to-BTC swap involved
Scale of the reported holdings
According to reporting from Coin Edition, the KelpDAO attacker moved approximately 75,700 ETH, valued at roughly $175 million, across three transactions. The sheer size of the conversion places it among the most significant exploit-linked asset movements tracked on Ethereum ETH +0.00% this year.
The wallet in question, identified on Etherscan, executed what appears to be a near-complete rotation out of ETH exposure and into BTC. The use of “nearly all” in reporting suggests a small residual ETH balance may remain, but the vast majority was converted.
ON-CHAIN DATA
- Wallet address: 0x5d39…5ccc
- Reported amount: ~75,700 ETH (~$175M at time of transfer)
- Transactions: Three separate transfers reported
- Destination asset: BTC
Why the wording matters
The claim remains “reported” rather than independently verified through a complete on-chain audit. LayerZero published an incident statement related to the KelpDAO exploit, though full details of the conversion timeline and methods used have not been publicly confirmed by all parties involved.
Readers should treat the $175 million figure and the three-transaction structure as sourced from external reporting, not as finalized forensic conclusions. Independent blockchain analysts have yet to publish a comprehensive breakdown of the swap mechanics.
Why rotating from ETH into BTC stands out
Why BTC becomes the focal point
An alleged exploiter choosing Bitcoin over stablecoins or privacy-focused tokens as a destination asset is a notable decision. BTC is the most liquid cryptocurrency by market capitalization, which could make large conversions easier to execute without catastrophic slippage, similar to how a newly created wallet recently withdrew 4,000 ETH from Kraken in a single movement.
However, Bitcoin’s transparent blockchain also means every subsequent movement of these funds can be traced. The choice suggests the exploiter may prioritize liquidity and perceived store-of-value properties over transaction privacy.
What the ETH exit signals
The rotation removes a significant block of ETH from active circulation tied to the exploit wallet. For context, 75,700 ETH represents a position large enough to move thin order books, and its conversion into BTC shifts the narrative from an Ethereum-native security incident to a cross-chain tracking challenge.
The movement also raises questions about whether the exploiter views ETH as a less favorable long-term holding compared to BTC, or whether the swap was purely tactical. Firms like Tesla, which held its Bitcoin position unchanged through Q1 2026, have demonstrated institutional preference for BTC as a treasury asset, though comparing corporate holdings to exploit proceeds is a stretch.
What traders and investigators will watch next
The immediate question is whether the converted BTC remains consolidated in a single wallet or gets dispersed across multiple addresses. Fragmentation would complicate tracking efforts and could signal an intent to obscure the trail further.
Blockchain analytics firms will be monitoring for any interaction with centralized exchanges, mixers, or cross-chain bridges. If the BTC enters a regulated exchange, it could trigger compliance flags and potential freezing of funds, a scenario that has played out in previous large wallet movements involving major platforms.
Whether KelpDAO or associated protocols pursue legal recovery efforts will also shape the next chapter. The reported conversion of the full ETH position into BTC suggests the exploiter has completed the initial phase of asset repositioning, making the coming weeks critical for on-chain investigators tracking the roughly $175 million in converted funds.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
