Wormhole Attacker Moves $155 Million in Staked Ether Trades

Wormhole Attacker Moves Stolen Funds

A cryptocurrency wallet associated with the Wormhole token bridge hack has moved over $155 million in stolen funds. This marks the first activity in months since the major hack in February 2022, where $321 million was stolen from the network. On January 23rd, the hacker transferred 95,630 ETH through OpenOcean, a decentralized exchange. The funds were converted into staked Ether (stETH) and wrapped staked Ether (wstETH).

Strategic Use of Staked Ether

In an intriguing development, the hacker used the wrapped staked Ether as collateral to secure a $13 million loan in the DAI stablecoin. This was then reinvested into more staked Ether, creating a cycle of transactions. This movement has sparked interest and concern within the crypto community, highlighting the ongoing vulnerabilities in blockchain security.

Market Reactions and Security Concerns

The transfer of such a large amount of staked Ether led to noticeable price fluctuations. The asset's value rose significantly before settling back. The Wormhole team responded to the wallet activity by offering a $10 million bounty for the return of the stolen funds. Meanwhile, blockchain security firm Ancilia Inc. has warned about phishing websites appearing in Google searches related to Wormhole Bridge, emphasizing the importance of vigilance in online security.

Importance of the Wormhole Hack

Despite being the third largest hack in 2022, the crypto division of Jump Trading, a significant supporter of the Wormhole bridge, compensated the stolen $321 million. This highlights the critical role of security and trust in the decentralized finance (DeFi) sector. The incident underscores the ongoing challenges and risks faced by the cryptocurrency industry.