Wintermute’s DeFi Operations Suffers $160 Million Hack

Wintermute’s DeFi Operations Suffers $160 Million Hack

Summary:

  • Crypto market maker Winteremute was hacked on Tuesday.
  • Losses from the incident are estimated at $160 million at press time.
  • The hack only affected decentralized finance operations, platform CEO and founder Evgeny Gaevoy tweeted to the community.
  • Gaevoy stressed that Wintermute remains solvent with twice the hack amount in equity.
  • The platform is also open to communication from the hacker(s). 

Wintermute suffered a hack on its decentralized finance (DeFi) operations resulting in losses of around $160 million from 90 exploited assets, the company’s CEO Evgeny Gaevoy confirmed on Tuesday. Gaevoy said the hack may affect operations for a few days. 

According to Gaevoy, other operations on the crypto market maker aside DeFi remain unaffected at press time. A crypto market maker holds a large assortment of digital assets and sells these virtual currencies to other broker-dealers.

SimpleFX

SimpleFX

Market makers also provide liquidity for specific cryptocurrencies. 

We’ve been hacked for about $160M in our defi operations. Cefi and OTC operations are not affected

— wishful cynic (@EvgenyGaevoy) September 20, 2022

Wintermute Solvent Despite Massive Hack 

CEO Gaevoy stressed that Wintermute does not face insolvency following the hack. The crypto market maker has double the amount in equity, per tweets from the company’s chief. However, Gaevoy anticipates a disruption in services over the next few days before things return to normalcy.

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

— wishful cynic (@EvgenyGaevoy) September 20, 2022

The founder also tweeted that Wintermute is capable of settling loans with lenders if they so wish. Finally, Gaevoy noted that the crypto market maker views the incident as a white hack for now. As such, the hacker is encouraged to reach out and possibly remedy the situation.

We are (still) open to treat this a s a white hat, so if you are the attacker – get in touch

— wishful cynic (@EvgenyGaevoy) September 20, 2022

Wintermute joins a list of crypto companies and DeFi players that have suffered major hacks in 2022. The $600 million hack on Sky Mavis’s Ronin Bridge remains the biggest exploit in the digital asset ecosystem so far this year.

Wintermute's DeFi Operations Suffers $160 Million Hack 8
Wintermute CEO Evgeny Gaevoy & Team Members (Source: Medium)

Read More

Write a comment

Your email address will not be published. All fields are required