Man in Suit Holding Head in Despair While Looking at a Stock Market Chart Showing a Dramatic Decline

Key Takeaways:

James Fickel lost over $43 million in 2024 after betting on Ether outperforming Bitcoin.
Fickel borrowed $172 million in Wrapped Bitcoin and swapped it for 56,445 ETH, but Ether’s underperformance led his Aave debt to rise to $132 million.
A 24% decline of ETH against BTC and significant outflows from US-based Ether ETFs deepened his financial losses.

James Fickel, a leading cryptocurrency investor, has suffered significant losses, with over $43 million lost since January 2024 due to a high-risk trade betting on Ether (ETH) outperforming Bitcoin (BTC).

Fickel borrowed $172 million worth of Wrapped Bitcoin (WBTC) from the decentralized platform Aave and traded it for 56,445 ETH.

CRYPTO MILLIONAIRE’S $40M DEFI OOPSIE

James Fickel, the dude with a $400 million crypto stash, just got wrecked with a $40 million loss in DeFi.

This year, he went all in on ETH against BTC, borrowing wBTC on Aave and flipping it for ETH.

But things went south, and now… pic.twitter.com/GhMQGriZfF
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 14, 2024

However, as ETH underperformed against BTC, Fickel’s debt on Aave ballooned to $132 million.

Data from Lookonchain revealed that since August, Fickel has been trying to repay the loan by using $12 million USDC to buy WBTC and trading 16,000 ETH.

Ether’s continued decline, with a 24% drop against Bitcoin in 2024, compounded his losses.

Additionally, outflows from US-based Ether ETFs, including a $2.7 billion outflow from Grayscale’s ETF, have added to the bearish sentiment surrounding Ethereum.

Fickel, once a successful early Ethereum investor, misjudged the market, leading to a major financial setback.