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Crypto Market Maker Wintermute Hacked, $160M Stolen

London, England-based cryptocurrency marketplace maker Wintermute has announced that it has been the target of a cyberattack and hackers have stolen $160 million from its DeFi (decentralized finance) operation.

On Tuesday, the company confirmed that the hack was limited to its DeFi operations, and OTC (over-the-counter), lending, and Cefi services were unaffected. However, its service may be interrupted for a day.

Algorithmic trading company Wintermute was founded in 2017. Currently, it trades billions of dollars on decentralized and centralized cryptocurrency trading platforms.

Hack Details

According The cybersecurity company Certik blockchain, a vulnerable private key generated by the Profanity personalized address generator is responsible for this attack. According to Certik’s analysis, the vulnerability exploited by attackers has been known since January.

The attacker(s) used the leaked or coerced private key instead of exploiting a smart contract vulnerability and obtained a privilege escalation feature to specify that the “exchange contract was the contract controlled by the attacker” .

The Profanity vulnerability was disclosed and disclosed by 1inch Network in its blog post published on September 13 and also warned about it on Twitter.

Profanity is one of the most popular tools due to its high efficiency. Unfortunately, this can only mean that most Profanity wallets have been secretly hacked.

1 inch network

Over $200 million in DeFi debt

The company is said to have over $200 million in outstanding DeFi debt. The largest debt released by TrueFi is approximately $92 million in Tether (USDT) and it is due to mature on October 15, 2022. Another lender is Maple Finance to whom Wintermute owes $75 million in USDC and Ether envelope. The company owes Clearpool $22.4 million.

In one of tweetcompany founder and CEO Evgeny Gaevoy said:

“If you’re a Wintermute lender, again we’re creditworthy, but if you feel more secure calling the loan back, we absolutely can. We’re creditworthy with twice that amount of equity remaining. .”

Most of the debt issued is in stablecoins, but it’s unclear if the company’s mention of Equity also covers digital assets.

Target assets

Garvey explained that around 90 assets were targeted in the hack. Two of them were notional for more than $1 million and none of them were notional for more than $2.5 million. Furthermore, Gaevoy insisted that customers of Wintermute market makers with agreements with the company should not worry about it.

“If you have an MM deal with Wintermute, your funds are safe. There will be a disruption to our services today and potentially for the next few days and will return to normal after.

Yevgeny Gaevoy

It should be noted that the company considers it a white hat event and has asked the attacker to contact them.

Wintermute is just one of many high-profile cryptocurrency companies that have become the target of hackers in 2022. Previously, blockchain bridge Wormhole suffered losses of $320 million and Ronin Network suffered losses. huge losses of 600 million dollars.

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