3 ms·

> “ETH will be added over the next hours to ensure wETH is backed 1:1,” the protocol wrote. Where would the ETH come from?

danielvf 5y ago
Giant investors, who have put a huge amount of money into the Solana blockchain, or into the company behind the Wormhole bridge. It's also likely that these same companies/individuals were the same ones that took most of the loss anyway, so they may mostly be paying back themselves, while at the same time keeping up the value of their investments the projects.
- gzer0 5y ago
  From the looks of it, they've closed up shop and left. Their website is just a massive banner pointing to their twitter [1]. If this is temporary, than this is extremely shady behaviour for an organization handling "millions" of crypto tokens. [1] https://portalbridge.com/ https://portalbridge.com/
  - democracy 5y ago
    Even if they left for Cuba - it's the famous "bank the unbanked" principle in action. They will be distributing the cash among the poor! Strong fundamentals! Legit team! Bright future!
  - Zpalmtree 5y ago
    No, that's just the bridge where you can actually transfer tokens they took down. Their main website is https://wormholenetwork.com/ https://wormholenetwork.com/
Animats 5y ago
That's a very good question. Where do they get a quarter of a billion dollars on short notice? Do they have that much of their own capital? Or are they taking this out of some other fund that nominally belongs to others?
- dboreham 5y ago
  It came from ETH owned by the bridge, essentially in a kind of escrow. That ETH is supposed to represent the tokens called "wrapped ETH" circulating on the Solana chain, in turn having been previously transferred from Ethereum through the bridge. The attack consisted of magic-ing some wrapped ETH out of thin air, then using them to release the escrowed ETH to the attacker on Ethereum.
  - Animats 5y ago
    Doesn't that mean they now have less backing than they did before?
  - runeks 5y ago
    > It came from ETH owned by the bridge, essentially in a kind of escrow. This thread is about where the now-stolen ETH will come from (to restore 1:1 backing of wETH to ETH). Not where the stolen ETH originally came from.

danielvf 5y ago

Giant investors, who have put a huge amount of money into the Solana blockchain, or into the company behind the Wormhole bridge. It's also likely that these same companies/individuals were the same ones that took most of the loss anyway, so they may mostly be paying back themselves, while at the same time keeping up the value of their investments the projects.

gzer0 5y ago
From the looks of it, they've closed up shop and left. Their website is just a massive banner pointing to their twitter [1]. If this is temporary, than this is extremely shady behaviour for an organization handling "millions" of crypto tokens. [1] https://portalbridge.com/ https://portalbridge.com/
- democracy 5y ago
  Even if they left for Cuba - it's the famous "bank the unbanked" principle in action. They will be distributing the cash among the poor! Strong fundamentals! Legit team! Bright future!
- Zpalmtree 5y ago
  No, that's just the bridge where you can actually transfer tokens they took down. Their main website is https://wormholenetwork.com/ https://wormholenetwork.com/

Animats 5y ago

That's a very good question. Where do they get a quarter of a billion dollars on short notice? Do they have that much of their own capital? Or are they taking this out of some other fund that nominally belongs to others?

dboreham 5y ago
It came from ETH owned by the bridge, essentially in a kind of escrow. That ETH is supposed to represent the tokens called "wrapped ETH" circulating on the Solana chain, in turn having been previously transferred from Ethereum through the bridge. The attack consisted of magic-ing some wrapped ETH out of thin air, then using them to release the escrowed ETH to the attacker on Ethereum.
- Animats 5y ago
  Doesn't that mean they now have less backing than they did before?
- runeks 5y ago
  > It came from ETH owned by the bridge, essentially in a kind of escrow. This thread is about where the now-stolen ETH will come from (to restore 1:1 backing of wETH to ETH). Not where the stolen ETH originally came from.