In a startling revelation, the individual behind the infamous $320 million exploit of the Wormhole bridge in 2022 found themselves in a surprising position of potential eligibility for an airdrop, initially amounting to a tempting $50,000 worth of freshly launched W tokens.
The details of this alarming oversight came to light through an investigation spearheaded by a pseudonymous researcher known as Pland. Detailed in a post on April 4th, this investigation uncovered a critical flaw in the protocol’s implementation. It was discovered that the Wormhole team had inadvertently overlooked the exclusion of several wallet addresses closely associated with the exploit, which siphoned off a staggering $321 million worth of cryptocurrency from the cross-chain bridge.
This oversight underscores the complexity and challenges inherent in maintaining the integrity and security of decentralized systems, especially in the fast-paced and constantly evolving landscape of blockchain technology. The incident serves as a stark reminder of the importance of rigorous security measures and thorough auditing procedures in safeguarding against potential vulnerabilities and exploits within decentralized protocols.
Addresses implicated in the Wormhole exploit were briefly considered for an airdrop but were subsequently ruled out as ineligible.
Wormhole, a cross-chain protocol, serves as a token bridge facilitating seamless crypto transactions across various blockchain networks including Ethereum, Solana, Binance Smart Chain (BSC), Polygon, Avalanche, Oasis, and Terra, eliminating the need for centralized exchanges.
Wormhole forgot to exclude the exploiter from the airdrop pic.twitter.com/xkkpDz9RAl
— Pland (@Pland__) April 3, 2024
In February 2022, the security of the Wormhole Bridge was breached by hackers, resulting in the loss of 120,000 wETH tokens from the platform, valued at a staggering $321 million. This incident marked the largest DeFi attack of 2022, with the hacker exchanging wETH tokens for various cryptocurrencies including Ethereum, SOL, USDC, APE, and SX.
Following the attack, Wormhole acknowledged the efforts of a white hat hacker who identified and rectified a critical bug in its core bridge contract on Ethereum. As a reward for this crucial intervention, the white hat hacker was granted $10 million.
In a notable turn of events in February 2023, Web3 infrastructure firm Jump Crypto and decentralized finance (DeFi) platform Oasis.app collaborated on a “counter exploit” against the hacker responsible for the Wormhole protocol breach. Through their joint efforts, a remarkable sum of $225 million in digital assets was successfully retrieved and returned to secure wallets, marking a significant victory in the ongoing battle against cyber threats within the crypto space.
SOURCE A: https://t.co/EXtHwdBpIH
SOURCE B: https://t.co/JF4TKftJPn
SOURCE C: https://t.co/sbMhdtrU61
SOURCE D: https://t.co/5emx1r8kfe
SOURCE E: https://t.co/ILLzx6SbtG
SOURCE F: https://t.co/y11GEbWKM8— DEGEN NEWS 🗞️ (@DegenerateNews) April 4, 2024
Recent data from the Solana-based airdrop verification tool Airdrop.link, later corroborated by Degen News on April 4th, disclosed that a total of four wallet addresses associated with the hackers were temporarily deemed eligible to receive Wormhole’s airdrop.
These wallet addresses, flagged by Solana block explorer Solana.fm, were all linked to the 2022 Wormhole exploit. Had the hacker chosen to claim the airdrop, they stood to receive approximately 31,642 Wormhole (W) tokens, valued at around $50,000 based on prevailing market rates.
However, subsequent inquiries revealed that the wallet addresses linked to the hackers were no longer qualified to receive the airdrop. This development suggests that the Wormhole team may have promptly rectified the oversight, underscoring their commitment to addressing security concerns within the protocol.
Wormhole unveils an airdrop of more than 675 million tokens, valued at $850 million.
On April 3rd, Wormhole made a significant announcement regarding the commencement of an airdrop involving an impressive tally of over 675 million freshly minted Wormhole (W) tokens. Valued at approximately $850 million, calculated based on prevailing market rates, this airdrop marks a notable event in the cryptocurrency sphere.
Having previously hinted at the forthcoming W token airdrop, Wormhole provided further insights into the initiative, revealing that a vast pool of more than 400,000 wallets stands eligible to partake in claiming these tokens. Among the total allotment, a staggering 617.3 million W tokens have been earmarked for the initial community and ecosystem distribution. This strategic allocation is intended to recognize and reward early adopters spanning the Solana, Ethereum, and other compatible blockchain networks, encompassing a diverse range of cryptocurrency communities.
An intriguing aspect of the W token lies in its governance capabilities, offering holders the opportunity to delegate their tokens for participation in governance decisions. This unique governance mechanism can be activated on the Solana blockchain or any Ethereum-compatible chains, marking what Wormhole proudly touts as the pioneering multichain governance framework.
Upon its debut on Wednesday, the W token experienced a remarkable surge in price, reaching an impressive high of $1.66 before undergoing a subsequent sharp decline. Presently, the token is valued at $1.31, reflecting a notable 20% decrease within the day’s trading. Market data provided by CoinGecko illustrates that the asset’s market capitalization briefly approached the $3 billion mark at its peak valuation but has since stabilized at approximately $2.4 billion, positioning it as the 54th largest digital asset by market capitalization.
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