Jump Crypto replenishes funds from $320M Wormhole hack in largest-ever DeFi ‘bailout’

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Jump Crypto, the venture capital firm that owns Certus One, the developer of the Wormhole token bridge, announced on Thursday that it has invested 120,000 Ether (ETH) in a Solana-Ethereum bridge that suffered devastating exploitation. The day before, hackers falsely hit $ 120,000 million worth $ 321 million on the Solana (SOL) platform, then exchanged 93,750 WETH for ETH on the Ethereum network, exchanging the rest for another currency on the Solana network.

The ETH-wETH cross chain is intended to have an exchange ratio of 1: 1 to each other. Therefore, unauthorized minting of coins leads to significant inflation, which can quickly undermine the credibility of the underlying bridge. Following the recent “rescue” of Jump Crypto and updates, things seem to be back to normal as Wormhole developers tweeted:

“All funds returned, the wormhole is back. The ETH contract is full, all funds are secured 1: 1.”
Several users quickly took to social media to thank Jump Crypto for the noble move, with @ terrysoh87 writing:

“Thank you very much. I know venture capital is often hated, but in times like these, everyone is hoping that venture capital will save the day. WAGMI [we will all work to make this happen].”
But the stark question remains – where is the “hacked money” and whether the attacker who took it will face the consequences of deterring such decentralized financial fraud in the future. Since these tokens were fraudulent and still exist in the ecosystem, this raises concerns about the possibility of exchanging “hacked” tokens from ETH as they are washed into “pure” ETH. Minting too many coins can also lead to temporary fears of inflation.

Source: CoinTelegraph

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