Wormhole Suffers Second-Biggest DeFi Hack, $320 Million in wETH Stolen By DailyCoin
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Wormhole Suffers Second-Biggest DeFi Hack, $320 Million in wETH StolenAlthough decentralized finance (DeFi) has been billed by many as the future of money, the vulnerability of DeFi protocols has remained a dint in the image of the nascent sector.
A week after it was reported that Qubit Finance had lost $80 million in a hack, network bridge protocol, Wormhole, has become the latest victim in the increasingly worrying trend of defi hacks.
Wormholes Lose $320 Million to a Solved Problem
Wormhole is a communication bridge network between , , and other top decentralized finance (DeFi) networks. The protocol currently has over $1 billion in its TVL.
On February 2, at 9:42 PM, the Wormhole team announced its network was temporarily down for maintenance as they were looking “into a potential exploit.”
Two hours later, the Wormhole team announced that the hacker made away with 120,000 wETH, or wrapped Ether worth approximately $320 million, making it the second-largest defi hack to date.
On the Flipside
- Wormhole has pledged to add ETH to its pool to ensure the wETH is backed one-for-one and get the network back up. It tweeted;
The wormhole network was exploited for 120k wETH. ETH will be added over the next hours to ensure wETH is backed 1:1. More details to come shortly.We are working to get the network back up quickly. Thanks for your patience.
— Wormhole (@wormholecrypto) February 2, 2022
According to the reports, the network vulnerability which led to the funds stolen from Wormhole had been identified on January 13. However, on January 16, the team reportedly fixed the vulnerability by pushing out updated code on Github.
Following the hack, Paradigm security researcher “samczsun” has stated that the Wormhole team has reached out to the exploiter’s address on the Ethereum network, offering a $10 million bounty for returning the funds.
Why You Should Care
The continuous exploits of DeFi protocols validate claims that the security of DeFi is yet to reach the level of accommodating the huge sums being stored within them.
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Wormhole Suffers Second-Biggest DeFi Hack, $320 Million in wETH StolenAlthough decentralized finance (DeFi) has been billed by many as the future of money, the vulnerability of DeFi protocols has remained a dint in the image of the nascent sector.
A week after it was reported that Qubit Finance had lost $80 million in a hack, network bridge protocol, Wormhole, has become the latest victim in the increasingly worrying trend of defi hacks.
Wormholes Lose $320 Million to a Solved Problem
Wormhole is a communication bridge network between , , and other top decentralized finance (DeFi) networks. The protocol currently has over $1 billion in its TVL.
On February 2, at 9:42 PM, the Wormhole team announced its network was temporarily down for maintenance as they were looking “into a potential exploit.”
Two hours later, the Wormhole team announced that the hacker made away with 120,000 wETH, or wrapped Ether worth approximately $320 million, making it the second-largest defi hack to date.
On the Flipside
- Wormhole has pledged to add ETH to its pool to ensure the wETH is backed one-for-one and get the network back up. It tweeted;
The wormhole network was exploited for 120k wETH. ETH will be added over the next hours to ensure wETH is backed 1:1. More details to come shortly.We are working to get the network back up quickly. Thanks for your patience.
— Wormhole (@wormholecrypto) February 2, 2022
According to the reports, the network vulnerability which led to the funds stolen from Wormhole had been identified on January 13. However, on January 16, the team reportedly fixed the vulnerability by pushing out updated code on Github.
Following the hack, Paradigm security researcher “samczsun” has stated that the Wormhole team has reached out to the exploiter’s address on the Ethereum network, offering a $10 million bounty for returning the funds.
Why You Should Care
The continuous exploits of DeFi protocols validate claims that the security of DeFi is yet to reach the level of accommodating the huge sums being stored within them.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7]
You can always unsubscribe with just 1 click.
Continue reading on DailyCoin
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
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