Bad Day for Crypto: Market Crashes Amidst Meta’s (Formerly Facebook) Loss of $10 Billion Statement and a Hack of $321 Million on ETH-SOL Token Bridge ‘Wormhole’.
“It has been a bad day so far for crypto as Meta (formerly Facebook) released statement on its loss of $10 Billion in virtual/augmented reality department in 2021 on the other hand the popular Ethereum and Solana Token Bridge ‘Wormhole’ was hacked today as the Token Bridge officially announced that an exploit of 120,000 wETH has been performed by a hacker and the tokens are removed from the network and transferred to the attacker’s wallets. Wormhole’s service has been shut down temporarily as the organization investigates the exploit.”
It has been a bad day so far for the crypto industry as the market seems to be under an immense selling pressure due to the sudden market fear induced by Meta’s (formerly Facebook) quarterly earnings report depicting a $10 Billion loss in its virtual/augmented reality department in 2021 as depicted in the final quarter earnings data. Meta has been expected to boost the blockchain based Metaverse segment of the crypto industry and weak earnings in the very segment is not a good sign for the company for the first quarter of 2022 resulting in a fear in the crypto market. After the announcement the Meta shares fell by 18% thus causing a ripple effect on the crypto industry.
On the other hand, Wormhole which is a token bridge that allows users to send and receive crypto between Ethereum, Solana, Terra, Oasis, Avalanche, Polygon and AVAX was exploited for 120K wETH on the Ethereum – Solana Bridge. The hack took place on the Solana side of the bridge and it is being speculated that the Terra Bridge might also be similarly vulnerable. The Wormhole team made the hack official through a tweet and assured the community that its ETH supply will soon be replenished so that the wETH is backed 1:1.
During the attack, the attacker minted 120,000 wETH on Solana blockchain out of which 93,750 wETH were redeemed for ETH worth $254 Million which is lying in the attacker’s wallet at the moment. Rest wETH was converted to Solana and currently approx. $44 Million worth of SOL is lying in the attacker’s wallet. In a response, the Wormhole deployer has reached out to the attacker with a statement “This is the Wormhole Deployer: We noticed you were able to exploit the Solana VAA verification and mint tokens. We’d like to offer you a whitehat agreement, and present you a bug bounty of $10 million for exploit details, and return the wETH you’ve minted. You can reach out to us at firstname.lastname@example.org”.