Binance Hacker's $5 Million PROM Sale Fetches Just $71 in ETH
Key Takeaways
- •A wallet associated with the Binance hack sold roughly $5 million in PROM tokens on October 31 and received only about $71 worth of Ethereum in return.
- •The swap took place at 04:28 UTC on October 31 and is publicly verifiable on Etherscan, as documented in Coinotag's November 1 report.
- •Automated market makers determine swap prices from the asset ratio within a liquidity pool, so a nearly empty ETH side caused the trade to settle at a nominal value despite PROM's quoted market price.
- •The transaction illustrates extreme slippage, which intensifies when an order is large relative to a pool's available depth.
- •Because confirmed Ethereum transactions cannot be reversed, the near-total loss became permanent, and any further moves by the closely watched wallet will appear in the public on-chain record.
The Binance hack cash-out has logged its most expensive mistake yet, with on-chain data from October 31 showing an estimated $5 million worth of PROM sold into a nearly empty liquidity pool for roughly $71 in Ethereum (ETH).
According to a report published by Coinotag on November 1, the transaction record on Etherscan shows the swap executed at 04:28 UTC (12:28 Taipei time) that day.
Mechanics Behind the Near-Wipeout Sale
The negligible return reflects the basic mechanics of automated market makers (AMMs), the smart-contract model that underpins most decentralized token trading. In an AMM, the price of a swap is determined by the ratio of the two assets held in a liquidity pool. When one side of the pool — in this case ETH — is nearly empty, incoming tokens have almost nothing to trade against, and the transaction settles at a nominal value regardless of the token's quoted market price. The episode is a stark illustration of slippage — the gap between the price a trader expects and the price actually received — which widens dramatically when an order is large relative to a pool's available depth.
Block explorers such as Etherscan record every transaction on the Ethereum blockchain, making the swap's timestamp, token amounts, and transaction details publicly verifiable by anyone. And because confirmed Ethereum transactions cannot be reversed, the near-total loss became permanent the moment the swap settled.
Hack Cash-Outs Under On-Chain Watch
Assets stolen in exchange hacks are routinely traced in real time by on-chain observers using public block explorers, and wallets linked to past incidents are closely monitored as they move or attempt to sell funds. Against that backdrop, the October 31 transaction — an estimated $5 million in PROM exchanged for about $71 in ETH — stands as the most expensive misstep logged so far in the ongoing Binance hack cash-out, according to Coinotag's reporting. Should the wallet move again, any further transfers or attempted sales would unfold in that same public record, visible to on-chain observers as soon as they are confirmed.
This content was first published on COINOTAG: https://en.coinotag.com/binance-hacker-sells-5m-prom-for-71-eth
