• Wed. Sep 28th, 2022

Crypto market maker Wintermute says it was hacked for $160 million

ByRandall B. Phelps

Sep 21, 2022

Crypto market maker Wintermute was hacked for around $160 million in its decentralized finance operations, chief executive Evgeny Gaevoy said in a tweet on Tuesday.

Wintermute’s centralized finance and over-the-counter operations are unaffected, Gaevoy said, adding that the company is “solvent with twice that amount in equity”.

“If you have a market making agreement with Wintermute, your funds are safe,” he said. “There will be a disruption to our services today and potentially for [the] a few days and will return to normal afterwards.

Hacks and exploits have become commonplace in decentralized finance, a parallel financial system in crypto that is automated by software instead of being run by human intermediaries. Wintermute is one of the largest liquidity providers in the crypto industry and the firm may be forced to withdraw some to further mitigate the risk of its loss, said Marcus Sotiriou, an analyst at the broker. ‘GlobalBlock digital assets, in a research note.

Mr Gaevoy said the company was always willing to treat the hack as “white hat” or ethical hacking and asked the attacker to get in touch.

An expanded version of this report is available at WSJ.com