Wormhole Bridge Fraudster Earns from $46M Staked in Maker, Purchases Wrapped Ether
The exploiter involved in the Wormhole bridge $320 million attack earns yields from staking the fraudulently gained tokens. A recent analysis of blockchain data revealed the exploiter’s wallet 0x69 remitted $46 million into the crypto lending protocol Maker.
Tracking the Wormhole Bridge Exploiter Activity
Blockchain data report published on Monday, February 13, revealed the exploiter leveraged the collateral to purchase ether worth $16 million.
The Monday report revealed that the attacker acquired 9750 ether, each valued at $1537. The blockchain-based security analyst Peckshield indicated that the exploiter concluded 1000 staked ether. The exploiter would later wrap the tokens in upward of 9700 wstETH.
Ether Suffers Temporary Buying Pressure
Peckshield observed that the exploiter activity imposed temporary buying pressure on ether, with the price levels increasing from $1520 to $1530. The blockchain security firm explained that the staked ether involved a derivative token granted to entities locking up ether.
The staking facilitates the maintenance and validation of transactions executed on the Ethereum blockchain. The security firm outlined that wrapped tokens involved representative tokens that carry value matching the underlying digital assets. The firm observed that wrapping the ether facilitates the exploiter to utilize them on various blockchains.
Exploiter Activity Reignites Debate on DeFi Vulnerability
Using proceeds obtained through exploiting the Solana-Ether Wormbridge reignites the debate decrying the vulnerability of decentralized finance (DeFi) platforms.
The preliminary assessment completed by the on-chain analysts revealed the Wormhole exploit involved 80,000 ether (ETH) transactions.
Also, the scrutiny revealed the address involved was possessing ETH with total value locked exceeding $250 million. Independent analysis showed the hacker held another 40000 ETH within the Solana network.
Previous scrutiny of the exploiter wallet demonstrates January activity by swapping 95360 ETH for an estimated $157 million. The exploiter leveraged the OpenOcean DeFi aggregator.
Subsequent examination of the January activity unearthed the exploiter’s footprint in multiple transactions using 1Inch and Kyber Network decentralized finance platforms.
Later, the attacker levered up the transacted amount by borrowing dai stablecoins. Also, the exploiter would later utilize Lido in executing smart contracts.
The activity portrayed a preference for the Ethereum network, as Lido is among the leading liquid staking derivatives in the ecosystem.
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