DeFi Sector’s Biggest Bailout, Jump Crypto Fills $320 Million in Ether Tokens

Venture capital firm Jump Crypto has replenished Ether tokens worth $320 million (approximately Rs 2,391 crore). These tokens were stolen from the Wormhole portal in a recent hacking. Jump Crypto is owned by Certus One, which has developed the Wormhole Blockchain Bridge. The firm deposited a total of 1 lakh 20 thousand Ether tokens in Wormhole accounts to replace the stolen capital. This is touted to be the biggest ‘bailout’ ever in the decentralized finance (DeFi) sector. JumpCrypto shared this detail on Twitter.

It has been said in the tweet that we have changed 1 lakh 20 thousand Ether tokens for community members and to support Wormhole.

The Wormhole Portal allows people to switch from one cryptocurrency to another with Ethereum-based smart contracts. The platform converts the input cryptocurrency into a temporary internal token called Wrapped Ether (wETH). It is then converted into the cryptocurrency the user needs. Such portals are called ‘blockchain bridges’.

The wormhole was hacked earlier this week. The hacker fraudulently mined 1 lakh 20 thousand tokens, which was worth about $ 322 million (Rs 2,410 crore). One of CoinTelegraph Report According to the hackers redeemed 93,750 wETH for Ether tokens, while swapping the rest for altcoins.

The fraudulently created cryptocurrency continues to exist even after replacing the stolen funds and can be used to obtain clean tokens. The wormhole portal has also offered a reward of $10 million (about Rs 75 crore) to unknown hackers. However, no response has been received from the hackers so far. Research reports last year revealed that centralized elements of the DeFi protocol are vulnerable to hackers.

A report by blockchain research firm CertiK has revealed that cybercriminals stole over $1.3 billion (about Rs 9,606 crore), causing massive damage to the DeFi protocol.