Crypto Trading Firm Wintermute Has Suffered $160 Million Hack

Crypto trading platform Wintermute has just lost $160 million in a hack which concerns its decentralised finance (DeFi) operation.

This news was confirmed through a tweet from the company’s founder and CEO, Evgeny Gaevoy.

This makes Wintermute the latest firm within the industry to have suffered a hack. A series of tweets by Gaevoy has revealed that the prominent trading firm’s decentralised financial operations have been breached.

He also clarified that the centralised finance and over-the-counter verticals had not been compromised in the hack.

He further stated that Wintermute, which counts Lightspeed Venture Partners, Pantera Capital, and Fidelity’s Avon among other backers, has remained solvent with “twice over that amount in equity left”.

Accompanying the tweets, he also mentioned that if lenders wanted to recall their loans, the trading platform would oblige.

He also added,

If you have a MM agreement with Wintermute, your funds are safe. There will be a disruption in our services today and potentially for the next few days and will get back to normal after.

Wintermute Provides Liquidity Solution To Over 50 Crypto Exchanges

Wintermute is responsible for providing liquidity to over 50 crypto exchanges and trading platforms, which include Binance, Coinbase, Kraken, and FTX.

It also serves decentralised platforms such as Dydx and Uniswap. Wintermute is also an active investor and has backed up startups such as Nomad, HashFlow, and Ondo Finance.

There is still a lack of clarity as Evgeny Gaevoy has not disclosed when exactly the hack took place or even how the perpetrators were able to carry out the hack.

There is also no update regarding the involvement of law enforcement.

Not just Wintermute, there is a rather long list of crypto companies that have been victims of security hacks in the last few months.

For instance, Crypto bridge Nomad had almost lost $200 million in the month of August before the DeFi protocol, Curve Finance, had $570,000 stolen.

Certik is also a blockchain security firm that has lost more than $1.3 billion to DeFi hacks in the last year.

The Hack Is A “White Hat” Event

The company’s founder and CEO have stated that this hack has been treated as a “white hat” event and even requested that the hacker contacts them.

The hacker’s wallet has been tracked by on-chain sleuth ZachXBT. It has been found that the wallet holds close to $9 million in Ethereum and $38 million in other ERC-20 tokens.

Wintermute has previously experienced another mishap this year when it sent $15 million of Optimism (OP) tokens to the wrong address. The tokens were, however, returned by the recipient.

Wintermute was founded in the year 2017, and it trades billions of dollars across the crypto market daily as it is a liquidity provider to multiple venues. Last week, Wintermute was named the official DeFi market maker for the Tron network.

Bitcoin was priced at $19,200 on the one-day chart | Source: BTCUSD on TradingView
Featured image from UnSplash, Chart: TradingView.com

Related Posts

Crypto Biz: NYDIG stacks sats, Elon buys Twitter

Amid the bear market, positive signs of crypto adoption continue to emerge. Also, Elon Musk is finally moving ahead with plans to acquire Twitter. For all the…

Bitcoin price finally made a move, and fireworks are sure to follow

New crypto market trends are starting to emerge now that Bitcoin and equities markets move closer to make-or-break levels, which will determine the markets’ direction. This week,…

How The Cardano Foundation Supported Launch Of This Hybrid NFT Project

The Cardano Foundation announced its support for the launch of a new non-fungible token (NFT) collection that will bridge the physical world with the digital. Created by…

FTT Spiked to 3-Week High as Visa, FTX Revealed Crypto Debit Card

The financial services corporation – Visa – collaborated with the cryptocurrency exchange – FTX – to offer debit cards in 40 countries across the globe. The cards…

Pace Gallery Announces Latest Artblocks NFT Drop

New York-based contemporary gallery Pace Gallery has announced a new development in its partnership with Artblocks. Launching on October 10, 2022, the new project is an NFT…

When Will Terra Victims Be Compensated?

It has been almost five months since Terra collapsed, and UST users are yet to be compensated as promised. The Luna Foundation Guard announced today that victims…

Generated by Feedzy