Gate.io Blog Optimism Hacker Transfers 1 Million OP Tokens to Vitalik Buterin

Optimism Hacker Transfers 1 Million OP Tokens to Vitalik Buterin

04 July 11:21

[TL: DR]

Ethereum layer-2 scaling solution Optimism loses over 20 million OP tokens to hackers after token launch with partner Wintermute.
Ethereum founder Vitalik Buterin unexpectedly receives 1 million OP tokens from optimism stolen tokens.
Marketmaker Wintermute admitted fault for the breach and committed to reimbursing the money taken.
The optimism hacker confirms plans to return the remaining tokens after sending another 1 million OP tokens to the founder of Ethereum.

Keywords: Optimism, Hacker, OP Tokens, Transfer, Vitalik Buterin

Source: blog.mexc.com

Optimism Token Launch With Wintermute Gone Wrong

Optimism, the Ethereum layer-2 scaling solution protocol launched its governance token, OP tokens, on several centralized exchanges. In her bid to manage her tokens distribution across the exchanges, Optimism partnered with Wintermute, a Market Maker, to provide liquidity for the process.

Before the Launch, Optimism sent 20 million OP tokens to Wintermute. However, On June 5, due to some non-professional error, Wintermute lost the 20 million Optimism (OP) tokens, which are currently valued at 17 million USD. This resulted from Wintermute, who accidentally provided a multi-signature Ethereum address that had not yet been implemented on the Optimism network. Due to this error, the funds could not be accessed on the Layer 2 network.

Wintermute discovering this error, planned to recover the funds. Still, Before the recovery operation slated on June 7, which was to be carried out in partnership with Gnosis Safe, a hacker installed the multi-signature Gnosis Safe wallet, a smart contract account on the Layer 2 network and acquired control of the 20 million OP tokens.

Hacker Transfers Tokens to Vitalik Buterin

The anonymous hacker who got access to these stolen funds has magnanimously transferred 1 Million OP tokens to Vitalik Buterins Wallet address. The reason for this action is unknown but it might result from Vitalik's praising Optimism for its non-governance token. He applauded OP Token used as gas fees paying tokens instead of the governance model.

The community thought that the hacker would sell all the tokens or use them to interfere with Optimism's governance. Interestingly, the hacker chose to distribute some of the OP tokens. For which he sent a part to Ethereum's co-Founder.

Source: cryptopia.blog

Wintermute Assumes Responsibility

Wintermute admitted full responsibility for the incident and even admired the hacker's performance and plans. If the tokens are not returned, they will be repurchased from the individual who did the exploit. However, The exploiter was given one week to contact the team or refund the money, after which the team would start looking for them and suing them in court if their sleuthing efforts were successful, says Wintermute.

In their statement, they said they believed it was a White hat hacker and reported, "We are willing to consider this a legitimate exploit. Furthermore, the execution of the attack has been rather outstanding, and we may look into future consulting prospects or other sorts of cooperation. We are also happy with the possibility that the final 19 million tokens are transferred back to the Optimism wallet."

Hacker Plans to Return Stolen Tokens

The hacker who exploited the mistake of Wintermute to possess the OP tokens have performed another transaction sending more tokens to Vitaliks wallet but this time leaving a message promising to return the remaining funds to Optimism and Wintermute.

The attacker's message reads,

"Hello, Vitalik, I believe in you, I care to know your opinion on this. BTW, help to verify the return address, and I will return the remaining after you. And hey Wintermute, I am sorry, I only have 18M left, and this is what I can return. Stay Optimistic!"

Conclusion

Transactions on the Blockchain are supposed to be handled with uttermost care and attention to detail. As much as cyber attacks abound in the crypto sphere, firms and protocols must protect themselves from attacks due to negligence.

Author: Gate.io Observer: M. Olatunji

Disclaimer:

* This article represents only the views of the observers and does not constitute any investment suggestions.

*Gate.io reserves all rights to this article. Reposting of the article will be permitted, provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.

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Optimism Hacker Transfers 1 Million OP Tokens to Vitalik Buterin

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