Someone stole $250m from Wormhole - here’s what you need to know.
“...it's always safer to hold Ethereum-native assets on Ethereum or Solana-native assets on Solana than it is to hold Ethereum-native assets on Solana or Solana-native assets on Ethereum.” - Vitalik, 5 January 2022
Wormhole lets you transfer value and information across blockchains.
The protocol allows you to transfer value from a chain like Ethereum to Solana and vice versa. It started in 2020 as a partnership between Solana and Certus One. If you launched on Ethereum but want to move to Solana, Wormhole can help facilitate this move.
Breaking down the $250m loot
- A flaw on the Solana side allowed the hacker to mint 120k worth of wEth.
- wEth is wrapped Ethereum. It helps bridge Ethereum to Solana on wormhole.
- The attacker sold 80k on Ethereum and the remaining 40k on Solana.
What happens now?
Wormhole and Certus One have offered a bug bounty. If the attacker returns the loot, they get $10 million and the ability to walk away without charges.
There are serious implications for folks holding Ethereum on Solana. ETH wrapped by Wormhole (wEth) accounts for 19% of the total ETH on Solana. This has zero value following this scam. Wormhole has promised to replenish the Eth, but it's unclear where they'll source this from.
This is a horrible situation for anyone holding Ethereum on Solana, and we hope they can some reprieve. Let’s hope they aren’t left dry. Until then, stay safe and on your chain.