$256 Million In ETH Stolen From Cross-Chain Protocol Wormhole

$256 million in ETH stolen from cross-chain protocol wormhole
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Many scams and dupes have proved that the crypto trading industry is indeed very risky. Until a few days ago, OpenSea was up for a row of disappointment after discovering that almost all of the free NFTs on it platform were either copied or uploaded without the knowing of the artist. Earlier, the platform also saw Bored Ape NFTs being listed by some users for a very low price, by taking advantage of a loophole in the system. Today, on 3, February 2022, it is an interoperability protocol- Wormhole, that has faced a huge loss of $256 million because of a loophole. Interoperability platform is such a platform that enables users to move their across various blockchain protocols.

A series of Etherscan transaction records shows that an attacker had exploited Wormhole, which works as a bridge between the Ethereum blockchain and the Solana blockchains. The dupe has caused Wormhole an extremely hefty amount, which is of 93,750 ETH, close to $256 million in dollars.

Also Read: OpenSea’s Latest Blunder

The system is such that, when a user sends assets belonging to one chain to a blockchain of another ecosystem, the interoperability platform “locks” the assets and mints in a “wrapper” and then transfers them to their destination chain. The way in which the thief has exploited this functioning system is not clear yet, but since it has caused a theft of a huge magnitude, prompt and strict action is more than expected. Also, this is one of the largest exploits of a DeFi, decentralized finance protocol to date.

Decentralized finance is such a system which enables financial transaction without the interference of any central authority like a bank, or the government, or any official institution as such. Wormhole tweeted on 3rd February, 2022 informing about this scam, 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.” It informs that Wormhole is currently shut down that for maintenance as well as it investigation purposes. According to reports, an on-chain message has been sent to the attacker, offering them a “Whitehat agreement” which has a bug bounty of $10 million for the details of the exploit and also return of the stolen coins. 

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