Cryptocurrency Market Maker Wintermute loses $160m in Cyber-Heist
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Cryptocurrency market maker Wintermute lost $160 million in cryptocurrency to cyber heist, but assured its customers that they will be refunded.

Evgeny Gaevoy, CEO,Wintermute admitted in a Twitter post that an ongoing hack was affecting Wintermute’s decentralised finance, but that its centralised finance and over-the-counter trading operations were free of this issue.

The incident has caused a disruption in the company’s services and the issue will be fixed relatively soon. The funds for customers with Wintermute are safe and the company has resources that exceed the equity level by two times, said Gaevoy.

Reports suggest Wintermute has $200 million in outstanding DeFi debt to various parties. In the attack, $160 million in 90 forms of digital assets were stolen. The most common types of digital assets taken were stablecoins valued at $114 million worth, it’s reported.

The thief will not be prosecuted and might receive some of the funds back, depending on what they do. The attack is being treated as a White Hat operation and like in the past cryptocurrency robberies, if the attacker reaches out to the company they are willing to not prosecute and further allow the thief to keep some of the stolen funds if he returns the rest. 

Zach XBT, a self-proclaimed sleuth, tweeted their Ethereum address 11 minutes later that Gaevoy tweeted his first tweet with the thief’s name, which is unlikely to find him. Wintermute is not sure if the crook has responded to their amnesty program.

Cybercriminals have made millions by stealing tokens and coins. When a heist occurs, it is nearly impossible to solve the crime.

Cybercriminals have made millions by stealing tokens and coins. When a heist occurs, it is nearly impossible to solve the crime.

Hacks are a real problem for cryptocurrency services – blockchain bridges have continually had millions in tokens stolen as criminals get smarter. Less than a year ago, bridge service Wormhole had a million in Ethereum stolen from them, and last month 220 million coins were taken from Nomad.

According to CertiK, $1.3 billion of cryptocurrency was lost in 2021 due to hacking and scams, an increase of 2,500% compared to the previous year.

The FBI has advised caution when interacting with any DeFi platforms, as cybercriminals are increasingly exploiting these platforms to steal money.

The Federal Investigations warned nearly $1.3 billion was stolen from DeFi operations between January and March of this year – the same as the entirety of 2021.

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