Ethereum Co-Founder Moves $170M in ETH to Protect Debt Position

TLDR

• A wallet linked to Ethereum co-founder Joseph Lubin transferred 110,000 ETH worth roughly $170 million on June 6, 2026.
• The move came after three years of inactivity from the source wallet.
• The ETH was added as collateral to three Sky (formerly MakerDAO) vaults holding $259 million in DAI debt.
• Onchain analysts said the move was defensive collateral management, not a sale.
• Ethereum fell below $1,600 and briefly lost its spot as the second-largest crypto by market cap to Tether’s USDT.

A wallet linked to Ethereum co-founder Joseph Lubin moved 110,000 ETH worth around $170 million on Saturday, June 6. The move sparked fear across crypto markets before analysts clarified what actually happened.

The transfers came in three transactions. The first moved 40,000 ETH worth about $61.9 million. The second moved another 40,000 ETH worth roughly $61.7 million. The third moved 30,000 ETH worth around $47.1 million.

Pillows asked publicly whether Lubin was planning to sell. That question spread quickly across crypto social media, fueling fear and uncertainty.

The Move Was About Protecting a Debt Position

Onchain analytics platform Onchain Lens clarified the real reason. The ETH was deposited as additional collateral into three Sky vaults. Sky was formerly known as MakerDAO.

Those vaults hold a combined 412,430 WETH in collateral against $259 million in DAI debt. The liquidation prices on the vaults sit at $899, $1,020, and $1,056 per ETH.

At Ethereum’s price near $1,560 at the time, the position sat roughly 33% above the closest liquidation threshold. Adding more collateral lowered the liquidation risk as ETH prices dropped.

One of the destination wallets had been flagged before. In February, Onchain Lens identified the same wallet as holding 137,908 ETH with $107.77 million in DAI borrowed. Saturday’s deposit grew that vault’s collateral to 177,908 WETH.

Lubin is also the founder and CEO of Consensys, the blockchain software company. Neither Lubin nor Consensys publicly addressed the wallet activity. Consensys declined to comment when contacted.

Ethereum Fell Below $1,600

The transfers happened as Ethereum was already under heavy selling pressure. At the time of the moves, ETH was trading at around $1,586, down nearly 5% in 24 hours.

Ethereum briefly lost its position as the second-largest cryptocurrency by market cap. Tether’s USDT took that spot for a period on Saturday.

ETH is down roughly 24% over the past week and about 47% year-to-date. The token recorded $271 million in long liquidations in the 24 hours around the event.

Other Ethereum Holders Also Reducing Positions

Lubin’s moves came alongside other disclosures from prominent Ethereum holders.

Bankless co-founder David Hoffman publicly said he reduced his ETH position on May 20. Onchain data also showed an early Ethereum holder sold around 55,000 ETH and 9,442 wstETH for a combined $136 million at an average price of $2,041.

The source wallet still held around 133,299 ETH worth roughly $211 million after the transfers, meaning Lubin’s position was not fully cleared.

Consensys is reportedly exploring a public listing with JPMorgan and Goldman Sachs.

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