Ethereum Co-Founder Sends $157 Million ETH to Kraken, Sparking Insider-Selling Fears

Ethereum co-founder Jeffrey Wilcke transferred 79,258 ETH (worth nearly $157 million) to the Kraken exchange on March 7.

Typically, asset transfers of this magnitude to an exchange are interpreted by the market as a clear signal to liquidate.

Insider Sales Add Downward Pressure as ETH Fights for $2,000 Support

Interestingly, analysts at blockchain analytical firm SpotOnChain noted a distinct “round-trip” pattern in the transactions.

According to them, these same wallets withdrew the exact amount of ETH from Kraken roughly 10 months ago, aligning with activity from one of Wilcke’s known primary wallets.

At that time, ETH was trading around $2,600.

So, the current movement suggests the assets were previously distributed for custody and are now being consolidated back to the exchange to sell. Despite this sustained offloading, Wilcke retains a formidable on-chain position, holding 27,241 ETH valued at approximately $53.56 million.

Notably, Wilcke has largely stepped back from active Ethereum development to focus on private gaming ventures.

Meanwhile, Wilcke’s move mirrors recent liquidations by other Ethereum insiders, though the underlying motivations sharply differ.

In February, Ethereum figurehead Vitalik Buterin sold 17,196 ETH (worth roughly $34.96 million). This surpasses his previously announced plan to liquidate 16,384 ETH for ecosystem development.

Buterin has explicitly stated his recent proceeds will finance open-source software and hardware development across the finance, governance, and biotech sectors.

Regardless of intent, these high-profile insider sales are exacerbating downward pressure as ETH struggles to hold the $2,000 psychological support level.

Industry experts attribute the broader price decline to shifting macroeconomic conditions that continue to stall the crypto market. Data from BeInCrypto shows ETH has plunged 34% since the beginning of the year, trading at $1,944 as of press time.

Meanwhile, the short-term outlook for the second-largest crypto remains grim. Bettors on the decentralized prediction market Polymarket currently assign a 67% probability that ETH could drop further to $1,800.