The Optimism Exploiter Has Sent 1 Million OP To Vitalik’s Address.
The Optimism layer-2 scaling solution’s honeymoon phase has been cut short due to a flaw in its market maker’s smart contract, which resulted in the loss of 20 million OP tokens.
The Optimism exploit occurred on May 26 but was only recently revealed to the community. On June 5, one million tokens worth approximately $1.3 million were sold. What’s more, an additional one million tokens worth approximately $730,000 were transferred to Vitalik Buterin’s Ethereum address on Optimism earlier today at 12:26am UTC. For the time being, the remaining tokens are dormant, although they could be sold at any time or utilized to influence governance choices.
OP tokens are the Optimism Layer-2 (L2) native token, and a portion of the supply was airdropped to network users on June 1. L2 solutions aid in the reduction of congestion on a layer-1 blockchain such as Ethereum.
The Optimism team provided a timeline of events on Thursday, detailing how the 20 million OP tokens were planned to be used by the Wintermute crypto market making firm. The Optimism team transferred the full number of tokens after sending two test transactions.
Vitalik Buterin, co-founder of Ethereum, has previously expressed support for Optimism’s new governance structure, saying that suggestions like using the OP token for gas fees demonstrate “explicit representation of non-token-holder interests.”
Wintermute accepted full responsibility for the exploit in a statement to the Optimism community on June 9. As part of its “best efforts to smooth the effects” of price volatility, the company indicated that it will undertake OP buybacks equal to the amount sold by the exploiter.
Wintermute has also offered to accept the incident as a white hat exploit if the hacker agreed to return 19 million tokens within one week. This offer was made before the hacker transferred another million tokens.
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