Crypto Trading Firm Wintermute Hacked for $160 Million! | Crypto

Crypto Trading Firm Wintermute Hacked for $160 Million!

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– Wintermute is a London-based cryptocurrency firm that trades billions of dollars worth of digital assets daily.
– The company lost $160 million in a hack early on Tuesday.
– The hacker stole about $120 million worth of Wintermutes stable coins including USDC and USDT, $20 million worth of its bitcoin and ether and another $20 million worth of lesser-known cryptocurrencies.
– Gaevoy explained that the hack likely originated with a service called Profanity, which generates vanity addresses for digital cryptocurrency accounts to make them easier to work with.
– When Wintermute learned of the vulnerability last week, they took steps to technologically blacklist their Profanity accounts, shielding them from being liquidated. However, due to their own human error, one of the 10 accounts didnt get blacklisted, which probably resulted in the $160 million heist.
– These trading accounts were part of Wintermutes decentralized finance or DeFi business, where it makes rapid trades on decentralized exchanges like Uniswap and Sushi Swap that arent controlled by a single entity.
– The DeFi ecosystem is young, highly experimental and designed to be more openly accessible than traditional finance, it doesnt have the same safeguards that centralized exchanges like Coinbase has.
– In 2021, DeFi hacks totaled $1.3 billion, according to research by security firm Certik. Analytics firm Chainalysis estimates that North Korea-linked groups stole $1 billion from DeFi protocols in the first eight months of 2022.
– The Wintermute CEO has some leads on who the hacker might be, and hes investigating them both internally and with the use of external partners. Hes hoping that the hacker will become a white hat who returns most of the funds, and hes now offering a 10% bounty, or $16 million, if the hacker gives back the remaining $144 million.

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