Market maker Wintermute falls victim to a hack
Wintermute, a market maker specializing in algorithmic trading activities, just suffered a $160 million hack.
Although nothing has been confirmed for the moment, it seems that this hack is the result of the exploitation of a flaw, concerning an address generation tool called Profanity. The latter allows, from a public address partly personalized, to trace back to a private key. It is therefore a useful application when you want to generate your own address.
The analysis of the different addresses involved on Etherescan shows that the attacker created a smart contract address in the morning. He then used this address to transfer all the assets present on the Wintermute smart contract.
Provided that Profanity’s lack of security is indeed the source of this hack, the attacker could have actually found the private key of the market maker’s smart contract, thanks to the latter’s public key.
Wintermute’s teams are open to discussion
In addition, Wintermute has an OTC brokerage business as well as a decentralized finance custodial operation (CeFi). According to the company, these two tables were not affected by the hack. Furthermore, Wintermute is said to be solvent for an amount up to twice the stolen sum.
Regarding the hack itself, the $160 million stolen would place it in the 7ᵉ spot of the biggest attacks in decentralized finance (DeFi).
After this call for discussion, it will now be a matter of whether he chooses the white hat route, or prefers to continue generating returns with the stolen money.