Bybit Hacker Launders Stolen Funds on Solana Memecoins Days Before $2B FTX Unlock

Solana price plunged 4% on Sunday February 22, trading as low as $167 as multiple bearish catalysts from the Bybit hack and impending SOL outflows from FTX Estate diluting supply. 

Solana Under Pressure as Bybit Hacker Launders Stolen Funds Through Pump.Fun Memecoins

Solana (SOL) experienced  another wave of steep losses on Sunday despite early recovery tailwinds within the crypto market. Notably, top altcoins like Ethereum, and Tron (TRX) erased considerable portions of losses booked in the aftermath of the Bybit crash on Friday, while Solana price has plunged even further.

The chart below shows how Solana price declined by 4% within the daily timeframe, trading at $167 lower that the $170 bottom recorded during the initial crash on Friday.

The latest SOL price slump has been linked to reports that hackers linked to the $1.4 billion Bybit hack are using the solana’ memecoin launchpad Pump.Fun platform to launder the funds stolen from ByBit.

Citing official data from Solana blockchain explorer Solscan, Blockchain analytics platform WuBlockchain alerted market watchers to a series of transactions linked to the stolen funds.

According to Solana blockchain explorer Solscan, blockchain analytics platform WuBlockchain identified suspicious transactions tied to the stolen assets:

“Bybit exploiter is laundering money by issuing memecoins on Pump.Fun. The Bybit exploiter (5STkQy…95T7Cq) transferred 60 SOL to 9Gu8v6…aAdqWS, who then launched a token called QinShihuang (500,000), which has traded over $26 million.”

This move could effectively nullify the possibility of a rollback, an outcome which has propelled Ethereum price by 8% as it reclaimed the $2,800 territory at the time of writing.

However, it sparked negative sentiment for the Solana network, as key opinion leaders began to berate the blockchain for a second major link to an high-profile exploit, a week after controversy broke out around Argentina President Javier Milei’s involvement with the LIBRA memecoin rug-pull.

“Solana is being used to launder stolen funds from Bybit. No need to beg for rollback, it has always been a wash chain.”

– CardanoHumpback, Feb 22, 2025

$2 Billion FTX Unlock Could Compound Solana’s Short-Term Woes

With SOL now trading below its previous local bottom, concerns are mounting over further downside risk. Adding to the bearish outlook is the ongoing repayment process for victims of the collapsed FTX exchange.

According to Bitget, over $800 million in funds were distributed to 160,000 customer accounts starting February 18. Bitcoin researcher PeddyXBT has pointed out that an additional 11.2 million SOL (approximately $2.03 billion) is due for distribution on March 1, less than a week away.

While he noted that over-the-counter (OTC) sales could mitigate immediate selling pressure, the 4% decline in SOL price on Sunday suggests majority of traders are exercising caution.

In summary, Solana’s Pump.Fun being used to launder Bybit hack funds—mere days before the $2 billion FTX asset unlock—could prompt strategic investors to reduce their SOL exposure. If selling pressure intensifies, further declines may be on the horizon in the coming trading sessions.

Solana Price Forecast: $150 Breakdown Likely if Bearish Risks Crystalize

Solana price forecast charts suggests further downside as bearish signals mount, with SOL trading at $168.08 after a 4% weekly decline. The daily chart shows price action constrained below the midline of the Bollinger Bands at $185.89, reflecting ongoing selling pressure. SOL remains pinned beneath the 50-day moving average at $185, reinforcing the bearish outlook as long as it struggles to reclaim this level. Trading volume at 1.44K suggests weakening market participation, limiting upside potential.

The Bull-Bear Power (BBP) indicator at -21.90 signals a firm grip by bears, extending a prolonged negative momentum streak. If this pressure continues, SOL could break below the lower Bollinger Band at $160.58, paving the way for a retest of psychological support at $150. A confirmed breakdown below this threshold could trigger an extended decline toward the next demand zone near $135.

Conversely, a decisive bounce off current levels, backed by increased buying volume, could see SOL reclaim $170. A move past the $185 resistance would invalidate immediate bearish projections and open the door to a potential recovery toward $211. However, without a shift in trading volume dynamics, bearish risks remain dominant.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.