Wormhole Attackers Just Moved 2.9M USDC To A New Wallet Address On Ethereum

Key Points:

• In a new move, Wormhole attackers just moved 2.9 million USDC to a new wallet address on Ethereum.
• On February 2, the hack stole about $326 million, and the trading bots also made US$13 million from the exchange rate difference.

According to the latest discovery by crypto security site Mistrack, Wormhole attackers have just transferred 2.9 million USDC to a new wallet address on Ethereum. The initial gas fee was from a marked wallet address before.

As mentioned in an earlier Coincu News article, on February 2, the project built on Solana witnessed the largest recorded hack in history. The hack cost the project $326 million.

Using the SignatureSet (signature_set) generated in a previous transaction, an attacker can bypass Wormhole’s protection solution (called Wormhole Guardians) for the first time. These Wormhole Guardians observe and validate events and data on connected chains. In other words, Guardians manage transactions between each blockchain. Before transferring tokens to another chain, Guardians check that the tokens are generated correctly. They do this by verifying the signatures of the tokens on the secp256k1 curve.

The attacker created a fake instruction silver account with bogus data. The signatures have been forged with previously valid transferred tokens. Therefore, all signatures in the charset are marked as accurate, which means all signatures are valid.

At the same time, the total profit from arbitrage is likely to be greater than the $13 million figure.

The hackers’ actions come as regulators worry about the impact these stablecoins will have on traditional financial markets. When many users seek to convert digital currency for fiat money, issuers will have to sell off the assets in reserve, which means a large amount of U.S. Treasury bills will be sold.

“And a large volume of redemptions, even in a fairly liquid market, can create turmoil in the underlying securities market. And how important the Treasury securities market is to the overall financial system in the U.S… I think regulators are rightly concerned.”

Eswar Prasad, professor of economics at Cornell University said to CNBC

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