On Thursday, Jump Cryptocurrency, the cryptocurrency venture capital firm that owns Wormhole token bridge developer Certus One, announced that it had deposited 120,000 Ether (ETH) into the Solana-Ethereum bridge that suffered a devastating attack. The day before, hackers fraudulently minted 120,000 reviews of Ether (wETH) worth $321 million on the Solana (SOL) platform and then converted 93,750 wETH to ETH on the Ether network while converting the rest to other torrents on the Solana network.
The cross-chain ETH-wETH exchange ratio is supposed to be 1:1. As a result, unauthorized wETH minting can lead to severe inflation, which can quickly reduce confidence in the underlying bridge. However, after the latest "bailout" and patch fix for the Jump cryptocurrency, things seem to be back to normal, as Wormhole developers tweeted.
“All funds have been restored, Wormhole has been backed up. eTH contracts have been completed, all wETH 1:1 support.”
Many users were quick to take to social media to thank Jump for the cryptocurrency's noble gesture, with @terrysoh87 writing.
“Thank you very much. I know VC is often hated, but in times like these, everyone wants VC to save the world. wagmi [we are all going to make it]”
But there is also the obvious question of what happened to the "hacked funds" and whether the malicious actors who took them will face consequences to stop similar decentralized financial scams in the future. Because these tokens were fraudulently minted and still exist in the ecosystem, it raises concerns about the replaceability of "hacked" ETH tokens as they are laundered into "clean" ETH. In addition, minting so many tokens could cause a temporary inflation problem. @dotstack (rhymer.stk) writes.
Like? I just don’t get it. Instead of focusing on recovering funds, what are we talking about? A bailout? I just wish it was a loan pending fund recovery.– rhymer.stk (@dotstack) February 3, 2022