The Wormhole has experienced one of the worst hacks. Hackers have stolen crypto worth over $320 million from a decentralized finance platform. It is the fourth-largest crypto heist and the latest to shake the fast-growing DeFi sector.
According to a recent report, Wormhole has faced a $320 million hack, the largest in the industry’s history. The platform, which operates on the Ethereum blockchain, was the victim of a malicious attack. The hackers could access the platform’s digital wallets and steal roughly $320 million worth of cryptocurrencies. The platform has since suspended all services and is working with security experts and exchanges to investigate the incident.
Overview of the Wormhole case
The Wormhole is a site allowing the transfer of information from one crypto network to another. On Wednesday, it said on Twitter that it exploited 120,000 units of a version of ether.
Wormhole did not directly respond to a Reuters proposal for commentary.
London-based blockchain analysis company Elliptic said that attackers could fraudulently create tokens. Ninety-four thousand of these tokens later appeared to be transferred to the ethereum blockchain, powering transactions for ether.
On Thursday, Wormhole said in another tweet that it fixed the vulnerability in its system. However, it was still working on getting the network back up.
DeFi platforms allow users to loan, borrow and hold (usually in cryptos) while avoiding traditional gatekeepers of finance such as banks.
Cash rushed into DeFi sites, reflecting the explosion of interest in cryptos as a whole.
Many investors are attracted to DeFi by promising high returns on their savings.
DeFi platforms have emerged as a substantial hacking risk, with bugs in code. It allows criminals to target DeFi sites while leaving few traces.
On Thursday, research showed that Fraud and theft at DeFi platforms reached $10 billion in 2021.
In August, hackers behind the most extensive digital coin heist returned almost all of the $620 million they stole from the DeFi site Poly Network.
Hacks have long troubled crypto platforms. In 2018, hackers stole digital tokens worth some $530 million from Tokyo-based platform Coincheck. Another Japanese exchange, Mt. Gox, collapsed in 2014 after hackers stole half a billion crypto dollars.
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