SOL - The Wormhole Hack Was a Close Call for Investors
By now, many crypto investors have heard of Tuesday's hack of the wormhole smart contract software that allowed the theft of 120,000 Etherum (CRYPTO: ETH) tokens worth about $320 million. This incident was deeply problematic, since it resulted in exploitation and financial losses to the company that released the software, but investor funds have been restored.
So what is the wormhole bridge? It acts as a connector that can send crypto transactions and tokens back and forth between Ethereum, Solana, and other networks. Wormhole is a project by Certus One, which is owned by privately held Jump Trading, LLC.
In a nutshell, the attacker forged the signature on a transaction in wormhole, then submitted the invalid transaction to the Solana (CRYPTO: SOL) network as a valid one, which allowed the fraudulent minting of a large number of ETH tokens on the Solana network. They then transferred many of those tokens to a digital wallet on the Ethereum network.
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The Wormhole Hack Was a Close Call for Investors