Wallets of Algorithmic Market Maker of cryptocurrency market were stolen. The Wintermeet hack resulted in the loss of $160 million in user capital.
According to Evgeny Gaevoy, founder and CEO of Wintermute, the company has been a victim of decentralized finance (DeFi) hacking attacks and has lost approximately $160 million in assets. The CEO of Wintermeet announced that the theft was a white hat hack and the company plans to talk to the hacker of the project.
Wintermeet hack details
Wintermute is an algorithmic market maker that works with digital assets such as cryptocurrencies. The company is located in Cheshire, UK and is regulated by the Financial Conduct Authority. According to published data, Evgeny Gaevoy owns more than 25% of Wintermute shares.
According to Ehterscan data, more than 70 different tokens have already been transferred to Wintermute Exploiter. These tokens include $6,135,0986 USDC, about 671 Wbtc tokens worth $1,303,0061, and $2,9461,533 worth of Tether. It is the largest transferred USDC token.
Financial operations outside the Wintermeet exchange were not affected by the hacker attack. Hackers managed to drain some funds through DeFi. Emphasizing that users’ funds are safe, Gaevory stated that Market Maker Wintermeet owes twice the amount stolen.
White hat hacking in the cryptocurrency market
According to Ajay Dhingra, head of research at smart exchange Unizen, the nature of the Wintermeet hack indicates that the wallets of the market maker’s users were compromised. Dhingra told Cointelegraph that the hacker managed to cleverly manipulate a bug in the Wintermute smart contract.
The security of smart contracts is considered important. The Wintermeet hack showed that the security of smart contracts is currently in an uncertain state. In a short series of tweets, Gaevoy stated that the Wintermeet hack was most likely a white hat hack. A hacker may contact Wintermeet to prevent a security hole in smart contracts.
White hat hacking is very relevant in the digital currency market. Crypto exchanges and companies sometimes offer handsome rewards in the form of cash or job opportunities to white hat hackers. The Ethereum address for the Wintermute hacker is public. This address is named by crypto enthusiasts.
What do you think about Wintermeet hack? Please leave your comments in the comments section duplicate share it.