• About Us
  • Jobs
  • Contact
  • Login
  • Register
Crypto Mufasa
  • General News
  • Beginner Guides
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Web Stories
  • Work With Us
No Result
View All Result
  • General News
  • Beginner Guides
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Web Stories
  • Work With Us
No Result
View All Result
Crypto Mufasa
No Result
View All Result
ADVERTISEMENT
Home Ethereum News

How $323 Million in Cryptocurrency Was Stolen from a Blockchain Bridge Called Wormhole

James by James
February 21, 2022
in Ethereum News
Reading Time: 2 mins read
A A
0
How $323 Million in Cryptocurrency Was Stolen from a Blockchain Bridge Called Wormhole
Tweet

In Brief:

  • Related articles
  • ” Ethereum (ETH) Makes Biggest Comeback in 250 Days With Impressive 20% Rally”
  • Wormhole Hacker Transferred $46 Million More From Stolen Funds

Related articles

" Ethereum (ETH) Makes Biggest Comeback in 250 Days With Impressive 20% Rally"

” Ethereum (ETH) Makes Biggest Comeback in 250 Days With Impressive 20% Rally”

March 15, 2023
Wormhole Hacker Transferred $46 Million More From Stolen Funds

Wormhole Hacker Transferred $46 Million More From Stolen Funds

February 13, 2023

Hackers have stolen over $323 million in cryptocurrencies by exploiting a vulnerability in Wormhole, a web service that allows transactions between blockchains. The wormhole allows people to move digital coins tied to one blockchain to another blockchain; such blockchain bridges are especially useful for decentralized finance (DeFi) services that operate on two or more chains, often with vastly different protocols, rules, and processes.

Guard without teeth

Bridges use wrapped tokens, which fix tokens on the same blockchain in a smart contract. After a decentralized cross-chain oracle* called a “custodian” certifies that the coins have been properly locked on one chain, the bridge creates or issues tokens of the same value on another chain. The wormhole connects the Solana blockchain to other blockchains, including the Avalanche, Oasis, Binance Smart Chain, Ethereum, Polygon, and Terra blockchains.

*an agent that finds and confirms real events and transfers this data to the blockchain for the use of smart contracts Cryptocurrency .

But what if you can’t trust the custodian? A lengthy analysis posted to Twitter hours after the theft states that the Wormhole’s backend platform failed to properly verify their custodian accounts. By creating a fake signed account, the hacker or hackers behind the theft minted 120,000 ETH – worth about $323 million at the time of the transactions – on the Solana network. The hackers then made a series of transfers that resulted in about 93,750 tokens being transferred to a private wallet stored on the Ethereum chain, blockchain analytics firm Elliptic said.

The hackers pulled off the theft by using an earlier transaction to create a signature set, which is a type of credential. With that, they created  Cryptocurrency a VAA, or validator action approval, which is essentially the certificate needed to approve transactions.

“Once they had a fake ‘signature set’, it was trivial to use it to create a valid VAA and trigger unauthorized minting on their account,” wrote @samczsun, Twitter manager for investment firm Paradigm.

“The rest is history. In summary, the wormhole did not properly verify all input accounts, which allowed the attacker to forge the signatures of the custodians and mint 120,000 ETH on Solana, of which they transferred 93,750 back to Ethereum.”

Tags: cryptocurrencycryptocurrency echangeCryptocurrency stolen
Tweet47Share76ShareSendPin17ShareSend
ADVERTISEMENT
James

James

James is a 33-year-old cryptocurrency enthusiast who has been involved in the industry since 2017. He has always been a keen follower of the crypto space and has experience in trading and mining cryptocurrencies. Since then, Sam has also written numerous articles on the subject and is passionate about sharing his knowledge and insights with others.

Related Posts

" Ethereum (ETH) Makes Biggest Comeback in 250 Days With Impressive 20% Rally"
Ethereum News

” Ethereum (ETH) Makes Biggest Comeback in 250 Days With Impressive 20% Rally”

March 15, 2023
Wormhole Hacker Transferred $46 Million More From Stolen Funds
Ethereum News

Wormhole Hacker Transferred $46 Million More From Stolen Funds

February 13, 2023
Best Ethereum Tokens to Invest in January 2023
Ethereum News

Ethereum: Two Main Updates for 2023

February 9, 2023
Aave V3: Revolutionizing DeFi Lending Platform With Cutting-Edge Features
Beginner Guides

Aave V3: Revolutionizing DeFi Lending Platform With Cutting-Edge Features

February 2, 2023
Raydium Hacker Moves $2.7 Million Using Tornado Cash Mixer
Ethereum News

Raydium Hacker Moves $2.7 Million Using Tornado Cash Mixer

January 19, 2023
Ethereum Index Entered The 'Greed' Zone: What It Means
Ethereum News

Ethereum Index Entered The ‘Greed’ Zone: What It Means

January 17, 2023
Best Ethereum Tokens to Invest in January 2023
Ethereum News

Best Ethereum Tokens to Invest in January 2023

January 5, 2023
Most Googled Cryptocurrencies In 2022
Bitcoin News

Most Googled Cryptocurrencies In 2022

December 23, 2022
Nomad Relaunches Token Bridge Amidst $190m Hack
General News

Nomad Relaunches Token Bridge Amidst $190m Hack

December 9, 2022
Load More
  • Trending
  • Comments
  • Latest
OKX: An all-in-one trading platform that supports cryptos, derivatives, staking, and lending

OKX: An All-in-one Trading Platform That Supports Cryptos, Derivatives, Staking, And Lending

December 27, 2022
Airdrop Scam Alert: Arbitrum Community Warns Against Fake Arbitrum Airdrops

Scam Alert: This Email Can Drain Your Crypto and NFT Wallet

January 21, 2023
Crypto Airdrops: Are They Really Safe? "The Ultimate Guide"

 A Step-By-Step Guide To Understand Arbitrum’s (ARB) Token Airdrop

March 17, 2023
HappyMiner

Earn Passive Income Cloud Mining With HappyMiner

March 19, 2023
Bitcoin ATM Rise Or Fall: In Less Than 60 Days, More Than 400 Machines Went Offline

Bitcoin ATM: How to use them?

1
All You Need To Know about Defi (Decentralized Finance)

All You Need To Know About DeFi (Decentralized Finance)

1
Robinhood enables the Web3 Wallet beta accessible to 10,000 users

Robinhood enables the Web3 Wallet beta accessible to 10,000 users

1
Mastercard Introduces a New Tool to Prevent Crypto Fraud

Mastercard Introduces a New Tool to Prevent Crypto Fraud

1
Top 5 Metaverse Tokens You Must Have In Your Portfolio

Top 5 Metaverse Tokens You Must Have In Your Portfolio

March 21, 2023
"India Leads The Global Crypto Adoption with 53% Of Users In 2023"

“India Leads The Global Crypto Adoption with 53% Of Users In 2023”

March 21, 2023
Crypto.com Will Be Laying Off 20% Of Its Workforce In 2023

Crypto.com Is One Step Closer To Obtaining An Operating License In Dubai 

March 20, 2023
Airdrop Scam Alert: Arbitrum Community Warns Against Fake Arbitrum Airdrops

Airdrop Scam Alert: Arbitrum Community Warns Against Fake Arbitrum Airdrops

March 20, 2023
Crypto Mufasa

© 2022-2023 CryptoMufasa.com
All Rights Reserved!

Navigate Site

  • Contact
  • Terms Of Service
  • Privacy Policy
  • Crypto Prices
  • Crypto Exchanges
  • Work With Us

Follow Us

No Result
View All Result
  • General News
  • Beginner Guides
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Web Stories
  • Work With Us

© 2022-2023 CryptoMufasa.com
All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In