Digital asset algorithmic market maker, Wintermute, sufferred an exploit relating to its decentralized finance (DeFi) operation, that resulted in a loss for approximately $160 million.
Another day, another DeFi attack. The crypto market has been enduring several exploits over the last few years. However, the DeFi market has been especially vulnerable to such attacks, losing over a billion dollars in the past couple of months. According to a recent public service announcement from the FBI, cyber criminals have embezzeled more than $1 billion in cryptocurrency assets from decentralized finance platforms in a three-month time span.
The Exploit Happened Though DeFi Operations
We’ve been hacked for about $160M in our defi operations. Cefi and OTC operations are not affected
— wishful cynic (@EvgenyGaevoy) September 20, 2022
In another such unfortunate incident, a leading algorithmic trading firm, Wintermute, has witnessed a major hack for $160 million through its DeFi operations. However, the firm’s lending and over-the-counter (OTC) services are safe. Wintermute CEO, Evgeny Gaevoy, took to Twitter to confirm the exploit emphasizing that the firm continues to remain solvent. He wrote,
“We’ve been hacked for about $160M in our defi operations. Cefi and OTC operations are not affected.”
Gaevoy added that there will be a slight disruption in its service over the next few days but the company will do its best to resolve the situation at the earliest. He further explained that 90 different assets were stolen with only two of the hits were worth between $1 million and $2.5 million. The takings from the remaining 88 were worth under $1 million each.
Gaevoy wrote that the company is still treating the hack as a “white hat” event and asked the hacker to get in touch. The hacker’s wallet has been tracked down by crypto scam buster, ZachXBT. The wallet currently holds around $9 million in ETH and $38 million in other erc-20 tokens. As per Zapper data, around 70% of the funds have been deposited to Curve Finance’s tricrypto pool, a popular move among hackers.
Attackers address for anyone curious:
— ZachXBT (@zachxbt) September 20, 2022
The Attack was a Hot Wallet Compromise
Meanwhile, according to Polygon’s chief information security officer, Mudit Gupta, Wintermute had recently disclosed a, “Profanity bug”, which may have triggered the attack. He also suspected that the attack was, “a hot wallet compromise.” Gupta tweeted,
“I took a quick look and my best guess is that it was a hot wallet compromise due to the Profanity bug that was publicly disclosed a few weeks ago.”
Wintermute was hacked for ~160m a few hours ago.
I took a quick look and my best guess is that it was a hot wallet compromise due to the Profanity bug that was publicly disclosed a few weeks ago. pic.twitter.com/FQoUYYajUR
— Mudit Gupta (@Mudit__Gupta) September 20, 2022
In June 2022, Wintermute provided Optimism’s team with a wrong blockchain address resulting in a loss of around $15 million in OP governance tokens. Gaevoy took responsibility for allowing the theft, saying that “we made a serious error.”
Golden, a startup that seeks to build a decentralized data hub, has raised $40 million dollars in a Series B funding round. The round, which was led by a16z crypto, will allow the company to keep building its concept, which revolves around combining data submission and validation with Web3-based token incentives. Golden Raises $40 Million […]
In Singapore, LBank, a major cryptocurrency exchange, participated in Token 2049 as a sponsor and exhibitor. At the Token 2049 venue, LBank was welcomed with open arms and went on to host a prosperous after-party. Singapore, one of the burgeoning major crypto hubs, welcomed a diverse crowd of enthusiasts and provided LBank with a beautiful […]
Back at the beginning of the year, some notable celebrities had been named in a lawsuit over the alleged Ethereum Max (EMAX) scam. These celebrities included reality star Kim Kardashian, boxing legend Floyd Mayweather, as well as former professional athletes Paul Pierce and Antonio Brown. The class action lawsuit had accused the celebrities of pumping […]
Ever since losing around 80% of its value from its all-time high, Bitcoin has been questioned as a store of value and a digital equal to gold. The digital currency still records the best performance for any asset across the last decade, but critics are fast to point out past year’s losses. Related Reading: Crypto […]
Bitcoin (BTC) accumulation is seeing a massive surge as it rises to levels last seen in 2015.
Analysts now view NFTs as Solana’s strong suit amid a wave of adverse reports surrounding the network.