The secret entity "7 Siblings" accumulated hundreds of thousands of ETH through leveraged financing

Blockchain investigator EmberCN recently shared information on social media platform X about another significant entity operating on Ethereum. In addition to the well-known portfolio of Trend Research, which owns 651,300 ETH through leveraged loans, another major player has come to light – an entity called “7 Siblings” – which has also built a substantial share through similar methods of secured financing.

Massive Deposit on Spark – The Largest Player on the Platform

The “7 Siblings” entity conducts its operations with remarkable systematicity. It has placed a total of 596,800 ETH across eight separate addresses on the Spark lending protocol, making it the largest individual depositor on that marketplace. This accumulation represents a strategic position within one of the largest DeFi ecosystems for secured loans.

Massive Stablecoin Loan for Nearly $200 Million

Against its deposited position, the entity borrowed $193 million in the most commonly used stablecoins – DAI, USDT, and USDS. This is a common practice in DeFi environments, where crypto asset owners leverage their holdings to obtain liquidity without having to sell their long-term holdings. The structure of these loans from Spark has given them flexibility for market positions.

Opportunistic Purchases During Market Drop – 49,287 ETH for $3,531 Each

During the market decline in October and November of the previous year, the “7 Siblings” entity actively engaged in buying. Using borrowed stablecoins, it acquired 49,287 ETH at an average price of $3,531 per token. This was a tactical maneuver during a market downturn – a classic accumulation strategy during falling markets.

Unrealized Losses and Current Market Reality

However, this strategy did not unfold as initially expected. Given that the current Ethereum price is around $2,150 (data from February 4, 2026), the entity faces an unrealized loss of approximately $27.7 million. The difference between the average purchase price ($3,531) and the current price ($2,150) creates significant financial pressure to maintain this position.

Broader Context – “7 Siblings” in the Spark Ecosystem

Network analysis identified that addresses ranked 2nd to 7th, 10th, and 11th on Spark belong to the same entity. This diversified structure suggests a sophisticated approach to risk management and an effort to minimize detection. The entity naturally does not follow a centralized structure but rather distributes its activities across multiple accounts.

What This Means for the Market

The existence of such massive leveraged entities is an important indicator for market participants. While such positions during price declines can lead to significant losses, maintaining such a large deposit on Spark signals that “7 Siblings” still believes in Ethereum’s long-term potential and is willing to wait for the market to recover.