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Wormhole Suffers Second-Biggest DeFi Hack, $320 Million in wETH Stolen -Breaking

by Mike Robinson

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Wormhole Suffers Second-Biggest DeFi Hack, $320 Million in wETH Stolen

Decentralized finance (DeFi), although billed as the future money by many, has not been fully appreciated for its vulnerability.

Wormhole is the latest victim to the growing concern about defi-hacks, one week after Qubit Finance was reported as having lost $80 Million in hack.

Wormholes Lose 320 Million on Solved Issue

Wormhole acts as a communications bridge between the top Decentralized Finance (DeFi), networks and Wormhole. The TVL currently holds more than $1 billion.

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, Wormhole announced that 120,000 WETH had been stolen by the hacker, which is roughly $320 million worth of wrapped Ether. It was now the second-largest known defi hack.

The Flipside

  • Wormhole promised to include ETH in its pool, to guarantee that the wETH will be backed only one-for-one. This would help to restore the network’s stability. It Twitter;

According to reports, Wormhole’s network vulnerability that led to funds being stolen had been discovered January 13. The team reported that they fixed the problem on January 16 by posting updated code to 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.

What You Need to Care About

DeFi protocols are continually exploited to prove that their security does not have the capacity to accommodate the large amounts of money they store.

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