A cross-chain cryptocurrency platform called Wormhole is subject to a breach, losing cryptocurrency funds over $326 million in this incident.
The threat actor behind this has stolen 120K wrapped Ether tokens, and converted 80K of them to Ethereum. Wormhole has shut down the platform for a while and began investigating. It’s also known that the platform has tried offering the hacker a bug bounty to resolve this issue.
Wormhole is a cross-chain cryptocurrency platform that lets it’s users transfer tokens to various blockchains. The platform processes such requests by locking (storing) the original token of a user, and creating (mints) a wrapped version of the same token, which can be sent to other blockchains. Thereafter, the user can unwrap it to get his own desired token.
As of now, it supports Avalanche, Oasis, Binance Smart Chain, Ethereum, Polygon, Solana, and Terra blockchains. On Wednesday night, Wormhole reported a breach incident on it’s infrastructure, where an unknown threat actor has exploited a bug in the Wormhole platform and stole cryptocurrency worth $326 million.
More specifically, the stolen funds are in the form of 120,000 wrapped Ether, out of which, 80,000 were converted by the hacker into Ethereum, and the rest of the tokens were sold on the Solana blockchain. As the doubt on Wormhole’s security grew in the community, the platform announced adding sufficient Ethereum to back up the stolen funds in 1:1 proportion.
Besides, Wormhole is seen negotiating with the threat actor through his wallet address, offering him a chance to resolve this issue. According to Elliptic, a Blockchain analytics company, the Wormhole team has sent a message to the threat actor’s wallet with a deal of returning the stolen funds, and disclosing the exploits used in exchange for a sum of $10 million bug bounty, under the “Whitehat agreement”. It’s unknown whether the threat actor has responded to it or not.
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