Another Solana Crisis in $320 Million Wormhole Bridge Hack

According to reports, Wormhole, a Solana bridge, has been exploited for up to $320 million.

The team posted a notice stating that the bridge was hacked, resulting in 120,000 wrapped ETH worth around $320 million. The team also stated that ETH would be added to the bridge’s wrapped version to ensure it is fully backed.

120k wETH was earned by exploiting the wormhole network.

To ensure that wETH is fully supported, ETH will be added in the coming hours. We will soon have more details.

We are trying to restore the network quickly. We appreciate your patience.

— Wormhole (@wormholecrypto February 2, 2022

The latest announcement from Wormhole Twitter feed at the time of writing was that the vulnerability has been fixed and that they are working to restore the network.

Biggest Bridge Hack Ever

Paradigm security researcher “samczsun,” has investigated the exploit and found that either the attacker got the private keys or exploited it. He also stated that the attacker had made a “corresponding transaction” on Solana, where he bridged out the ETH. The hacker essentially exploited a flaw to mint wETH without depositing ETH.

How did the @wormholecrypto exploit function? I joined forces with @gf_256 and @ret2jazzy to reverse engineer the exploit, and now that it’s been patched we can finally share it with you

— samczsun February 3, 2022

Tom Robinson, co-founder of Elliptic’s blockchain analysis company, said:

This is yet another proof that the security of DeFi service has not been adequate to protect the large sums stored within it. An attacker can identify and exploit major bugs because of the transparency provided by blockchain.

The Wormhole developers have posted a message on Ethereum blockchain offering a bounty to return the loot.

“We noticed that your exploits of the Solana VAA verification were possible and you were able mint tokens. We offer a whitehat deal and a bug bounty of $10,000,000 for exploit details and the return of any wETH you have minted.

Wormhole was created by Certus One, a blockchain engineering company. Jump Trading acquired Certus One in August. Solana Labs launched SolanaPay, its payments app, on February 1.

SOL Prices Tank

This latest Solana woe is the bridge hack. There have been 4 network outages in the same time frame.

SOL prices fell 12% in the last 8 hours, from $111 to $97 at time of writing. Now, the token trades at 62.5% below its Nov. 6 high of $260.

Solana has been often referred to as an “Ethereum Killer”, but the latest setback, along with multiple network and performance problems it has suffered recently makes that claim moot.