Hackers have stolen around $160 million worth of cryptocurrency from crypto market creator Wintermute, the company said Tuesday. The incident marks the latest in a growing list of major crypto heists this year.
The hack is said to have targeted Wintermute’s decentralized finance (DeFi) operations, according to a series of cheep Tuesday of the founder and CEO of the company, Evgeny Gaevoy.
DeFi services, a newer part of the cryptocurrency world, do away with centralized exchanges and are primarily based on Ethereum’s blockchain technology. These services are considered “exceptionally vulnerable to hacking,” according to blockchain analytics firm Elliptic, due to their open source code, large amounts of assets, and rapid growth that may have led to a lapse in security best practices across the board. some cases.
In the first seven months of 2022, a staggering $1.9 billion in cryptocurrency was stolen through hacks from various services, which is a 60% increase from the same period a year earlier, according to a report published by the cryptocurrency firm. Chainalysis blockchain analysis last month.
Some of the biggest crypto hacks of the year so far have occurred in DeFi protocols, including the $625 million hack in March of a gaming-focused blockchain network that supports the popular video game Axie Infinity. Some of these thefts, including the Axie incident, have since been attributed to hackers associated with North Korea. Wintermute has provided no clue as to who may be behind the theft.
In his tweets on Tuesday, Gaevoy assured clients that Wintermute remains “solvent with twice” the stolen $160 million remaining in remaining capital.
Wintermute, founded in 2017 by Gaevoy, refers to itself as a “leading” digital asset market maker. It has provided liquidity on more than 50 crypto exchanges and platforms.
Users have been warned that there could be a service outage in the coming days. “If you are a Wintermute lender, again, we are creditworthy, but if you feel more confident to take the loan out, we absolutely can,” Gaevoy tweeted.