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September 20, 2022

Market Maker Wintermute Hacked, $160 Million Gone

According to the CEO of Wintermute, Evgeny Gaevoy, a security compromise caused the company to suffer a loss of 160 million dollars in cryptocurrency.

In an early morning tweet on Tuesday, the CEO of the company stated that the loss was related to the company’s “DeFi activities”.

They added that the loss would not have an effect on the company’s loan or OTC business.

In addition, the organization continues to see the breach as an act of goodwill and maintains the belief that the perpetrator will repay the stolen money.

Source: Gaevoy’s Twitter

How The Wintermute Hack Happened

Wintermute did not reveal the specific “DeFi activities” that were responsible for the company’s financial losses.

It would seem that the losses are exclusively related to the security mechanism.

The corporation employs these given that there have been no big DeFi protocol compromises in recent years.

Gaevoy revealed that the corporation had lost a total of ninety distinct assets. The majority of the assets have a value that is less than one million dollars.

Two of them are estimated to be worth more, although their total value does not exceed $2.5 million.

It is hoped that this would allay any concerns over the possibility of a significant market sell-off in the tokens as a direct consequence of the Wintermute hack.

The “main market-making business” of the company will see difficulties over the course of the next “few days,”.

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After that, Wintermute anticipates that things will “return to normal.” According to the CEO, the business is still in a “twice as solvent” position and is able to meet its commitments regarding loans.

The centralized cryptocurrency corporation Wintermute is the most recent company to experience a security issue. You may recall that a series of investigations against BitMart was launched by authorities in the U.S. in August. Due to a cyberattack, the centralized exchange had lost a total of $200 million.