Hackers stole nearly $320 million in cryptocurrency from a decentralized finance (DeFi) platform Wormhole Portal. The DeFi platform is a bridge between the Solana (SOL) cryptocurrency and other blockchains, has been mined for around 120,000 Ethereum wrapped.
It should be noted that this is the fourth biggest crypto heist of all time. Wormhole offered a bounty worth $10 million to the hackers to return the funds. “The wormhole network was mined for 120k wETH. ETH will be added over the next few hours to ensure wETH is backed 1:1. More details to come shortly. We are working to quickly restore the network. Thanks for your patience,” Wormhole said in a recent tweet.
For the uninitiated, DeFi is an alternative financial ecosystem where consumers transfer, trade, borrow, and lend cryptocurrency, independent of traditional financial institutions and the regulatory structures that have been built around banking. The DeFi movement aims to “disintermediate” finance, using computer code to eliminate the need for trust and intermediaries in transactions.
The DeFi sector has seen an increase in thefts and scams over the past 12 months. In January 2022, the DeFi company Qubit Finance was attackedand the network suffered a loss of nearly $80 million.
DeFi transaction volume reached 912% in 2021, according to statistics from Chainalysis. “DeFi is one of the most exciting areas of the broader cryptocurrency ecosystem, providing tremendous opportunities for entrepreneurs and cryptocurrency users,” Chainalysis wrote in its annual Crypto Crime Report. . “But DeFi is unlikely to realize its full potential if the same decentralization that makes it so dynamic also enables widespread scamming and theft.”
As of early 2022, Chainalysis said illicit addresses already held more than $10 billion worth of cryptocurrency, with the majority held by wallets associated with cryptocurrency theft. Hackers have targeted DeFis the most in 2021, in another warning for those getting started in this emerging segment of the crypto industry. “DeFi is one of the most exciting areas of the broader cryptocurrency ecosystem, providing tremendous opportunities for entrepreneurs and cryptocurrency users,” Chainalysis wrote in its annual Crypto Crime Report. .