Jump Trading Covers $322M Loss in Wormhole Exploit

Key Takeaways

  • Jump Trading has replenished Wormhole’s $322 million loss in last night’s attack.
  • Last night’s attack was one of the largest crypto hacks in the history of the space.
  • Some details surrounding the attack and its fallout have emerged, though Wormhole has yet to publish a thorough incident report.

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Jump Trading has provided Wormhole with funds to cover the $322 million exploit it suffered last night. The hacker’s new fortune remains in their wallet, though. 

Wormhole Bridge Usable Again

Jump Trading, parent company of Wormhole, has put up the funds to cover losses incurred in the bridge protocol’s significant exploit last night.

Wormhole tweeted today that it planned to publish a detailed incident report and gave a rough timeline of important events—the 120,000 ETH exploit occurred at 18:26 UTC yesterday; the patch was implemented at 00:33 UTC; Jump replenished the contract with 120,000 ETH today at 13:08 UTC; finally, the protocol reopened by 13:29 UTC.

Jump Trading, the parent company of Wormhole, is a high-frequency, proprietary trading firm with investments in prominent projects like Solana, Terra, Amp, and Voyager. It has a long reputation of being a fairly secretive firm.

A little over 30 minutes after the exploit, Twitter user “smartcontracts” detailed how the hack occurred in a long thread. In essence, the attacker was able to effectively fake the signatures of the so-called “guardians” that sign off on bridge transfers. Whitehat hacker “samczsun” offers a more detailed account here.

Wormhole has offered last night’s attacker a $10 million whitehat agreement for returning the funds and detailing his attacking methodology, but so far has not been taken up on the offer. 

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.

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Avalanche creates $200 million fund to lure top crypto devs

The Avalanche Foundation has unveiled “Blizzard” — a fund offering more than $200 million in incentives to developers who build on the Avalanche (AVAX) network.

The fund will provide liquidity to those early-stage projects that innovate decentralized finance (DeFi) applications, nonfungible tokens (NFTs), and other products on Avalanche.

Avalanche is a Proof-of-Stake network that launched in September 2020. The network boasts Ethereum Virtual Machine (EVM)-compatibility, allowing developers to port decentralized applications over from Ethereum. The network now boasts more than 320 projects that are currently building on it, including top stablecoin issuer Tether, popular DEX SushiSwap, and oracle providers Chainlink and The Graph.

Per a Nov. 1 announcement, Blizzard’s contributors include the Avalanche Foundation, Ava Labs, Polychain Capital, Three Arrows Capital, Dragonfly Capital, and CMS Holdings.

Blizzard will prioritize four key areas of growth across the Avalanche ecosystem — DeFi, enterprise applications, NFTs, and culture applications. The funds will be used for equity investments, token purchases, partnership efforts, technology, and business development.

Builders within the ecosystem will also be offered ongoing support, with Ava Labs president John Wu stating:

“Blizzard is entering the Avalanche community at a pivotal moment, where this influx of users and activity demands constant innovation in new applications and use cases on the platform.”

Avalanche is the sixth largest proof-of-stake network with a $14 billion staked capitalization and t 56% of it’s supply  currently staked.

Per DefiLlama, Avalanche is the 5th-largest network with a total value locked of $8.5 billion, with its TVL having surged by 2,624% from just $312 million in August.

Related: Cointelegraph Consulting: How Avalanche is reimagining DeFi

According to CoinGecko, AVAX is down roughly 18% from it’s Sep. 23 all-time high of $79.31, last trading hands for $64.80 at the time of writing.