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Wednesday, August 10, 2022

Wormhole Token Loses Close To $321 Million

The Wormhole token bridge went through an exploit in its security on Wednesday, which led to the loss of 120,000 Wrapped Ether tokens. For the uninformed, this is a token bridge that usually provides for users to receive and send crypto between Solana, Ethereum, Polygon, Binance Smart Chain, Avalanche, Oasis, and others without the overreaching need of a centralized exchange.

Interestingly, this security exploit has been the largest crypto hack for this year and the second-largest decentralized finance hack to date. The team from the company has already offered a bug bounty of $10 million for the immediate return of the funds. 

Wormhole Experiences Large Crypto Hack

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The hack went on to take place on Solana’s side of the bridge, and there have been multiple fears that the bridge of Wormhole towards Terra would be equally vulnerable. The team from the company has already assured the crypto community that its supply of Ether would be replenished to ensure wETH is backed 1:1, but there has been no word yet on where those funds would be coming in from, or when they would be touching base. 

The hack on Wormhole took place on Wednesday, with the attack minting around 120,000 wETH on Solana, after which they redeemed 93,750 wETH for ETH worth $254 million onto the network of Ethereum. The hacker, since that point, has used some of the funds to purchase Meta Capital, SportX, Finally Usable Crypto Karma, and Bored Ape Yacht Club Token. The remaining wETH was then swapped for USD Coin and Solana on Solana. The Solana Wallet of the hacker currently has around 432,662 SOL.

Interestingly, the team from Wormhole did contact the hacker through their address on Ethereum, where they offered the hacker a sum of $10 million if the remaining funds were returned.

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