Wintermute crypto hack results in $160 million worth of stolen digital assets

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Wintermute Crypto Hack Overview:

  • Who: Crypto trading firm Wintermute has announced that hackers have stolen approximately $160 million worth of digital assets.
  • Why: One of the company’s trading wallets was compromised in the attack, the company’s CEO said.
  • Where: The company is based in the United States.

About $160 million in digital assets were stolen in a hack by cryptocurrency market maker Wintermute.

The founder and CEO of the company Evgeny Gaevoy announced the attack September 20 on Twitter.

According to the tweets, the hack targeted the company’s decentralized finance (DeFi) operations and had no impact on the company’s other operations.

“We are solvent as we have double the equity left over,” Gaevoy reassured his followers, saying that as of Sept. 20, the company still held at least $320 million worth of digital assets for use in future deals.

Wintermute CEO says the company will “get back to normal” soon

Wintermute is a “market maker” for cryptocurrency exchanges and other crypto platforms, holding enough specific digital assets to ensure traders have partners to buy and sell with, according to the company’s website.

Gaevoy said the hack caused a disruption in the company’s services, but the company should return “back to normal” by the end of the week.

in one later series of tweetsthe CEO said the attack was related to the company’s wallet, which is being used for DeFi proprietary trading operations.

“The attack was likely linked to the Profanity-type exploit of our DeFi trading wallet,” he said.

He added that when the company learned about the profanity exploit last week, it began fighting it, but due to an internal error, the company blacklisted the wrong party.

“As advanced as our technology is, most exploits come from human error. We continuously invest in human impact minimization processes, both internally and with the help of external security consulting,” he said.

The company is not currently facing legal action for the attack, but Top Class Actions closely follows hacks, which sometimes result in class action lawsuits.

Now a Coinbase customer filed a class action lawsuit against the cryptocurrency exchange for allegedly failing to keep customers’ accounts secure and therefore allowing financial losses from account breaches and unauthorized transfers.

What do you think of the Wintermute hack? Let us know in the comments!

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