Crypto News / Decentralized Finance (DeFi) · September 24, 2022

DeFi Sector Takes Another Blow As Wintermute Suffers From A $160 Million Hack

In the latest developments, Wintemute, a major cryptocurrency market maker (CMM), has been victimized by a hack attack. The hack has resulted in the protocol losing millions of dollars to the attackers.

Wintermute Loses $160 Million

According to the reports, Wintermute suffered a major hack attack resulting in the platform losing $160 million. It is another huge low blow dealt to the decentralized finance (DeFi) sector.

The industry is constantly being targeted by hackers from around the world. It is the very nature of the sector that has made it the perfect target for hackers.

As the hackers attempt to hack the DeFi protocols, there is so less of an effort they have to make to conceal their identities. The sector is fully decentralized means that the identities are hidden in advance.

Tweet by Wintermute

The CEO at Wintermute, Evgeny Gaevoy was the one who broke the news through the company’s Twitter profile. He announced that their protocol had fallen victim to a hack attempt.

He revealed that the hackers had trespassed and had gained access to their decentralized finance operations. As a result, they were able to steal $160 million from their operations.

Evgeny Gaevoy confirmed that while the DeFi operations were affected, they found no issues with their OTC and CeFi operations. He confirmed that those projects were not harmed or attacked by the hackers at all.

This confirms that the hackers found it easier to attack the decentralized finance operations than make an attempt on other protocols. The hackers did not make any attempt to attack the over-the-counter operations and the centralized finance operations.

Assets Remaining in the Coffers

Following the hack, the executives revealed how much funds they have left to make sure there is no mark among the investors.

The company has announced that still has more than $320 million in its funds. The firm officials clarified that they still are very solvent so the investors have nothing to worry about.

The market will not witness any kind of major or minor sell-off due to the recent hack their protocol has suffered.

CZ Comes in to Offer Help

The CEO at Binance, Changpeng (CZ) offered their support and assistance to Wintermute. He stated that their security teams are available to offer their assistance to Wintermute teams to run an investigation.

They can help make their project safer and more protected going forward. He confirmed that their firm has been monitoring the situation and will provide all possible assistance from their end.

Wintermute is yet another major hack attack added to the list of DeFi project hacks. It now follows Nomad, which also suffered a major hack attack losing $190 million.