Jump Crypto, a Web3 infrastructure firm, and Oasis.app, a decentralized finance platform, conducted a “counter exploit” on the Wormhole protocol hacker who stole around $321 million worth of Wrapped ETH (wETH) in February 2022.
The hacker subsequently moved the stolen funds around via different Ethereum-based decentralized apps (dApps). As a result, the incident profoundly impacted the DeFi community, causing widespread concern about the safety of digital assets.
What’s The Wormhole Protocol Hack All About?
The Wormhole Protocol is a decentralized, universal message-passing protocol that connects different blockchains like Ethereum, Binance Smart Chain, Terra, Solana, Polygon, Avalanche, and Oasis to each other.
It allows for communication between these blockchains and addresses two of the main problems that plague blockchains today, interoperability and scalability.
However, the Wormhole Protocol was exploited by an unknown hacker in February 2022. The hacker exploited a vulnerability in the Wormhole Network to carry out the second-largest crypto theft from a decentralized finance (DeFi) protocol ever.
The hacker was able to steal a significant amount of digital assets, and the exploit had a substantial impact on the DeFi community.
Hacker Gets Hacked
So in order to recover the stolen funds, the High Court of England and Wales ordered Oasis.app to work with Jump Crypto. The two companies were able to recover $225 million of digital assets and transfer them to a safe wallet using a counter-exploit. The counter-exploit involved identifying and exploiting vulnerabilities in the hacker’s system to retrieve the stolen funds.
This collaboration was a significant step in the fight against security breaches in the DeFi industry. The incident highlighted the importance of collaboration and cooperation between industry players in combating security breaches.
As the DeFi industry continues to grow, it is essential to prioritize security and cooperation to ensure the long-term success of the blockchain industry.
