Bloomberg News reports that a digital asset wallet that links to one of the largest crypto hacks managed to move beyond $150 million of stolen funds. This was the first time that such an instance occurred in months, and it was done for trapping a trade that involved staked Ether.
On Monday, the crypto community noticed that the blockchain data indicated the conversion of the funds into staked Ether. This was followed by conversion into wrapped staked Ether, tokens that find support on the decentralized finance platform, Lido.
Signals Used by Data Hackers
The data indicated that the hackers made use of wrapped staked Ether. It was used as collateral for taking out a loan worth $13 million in DAI stablecoin and to buy more staked Ether. Repeated trades were carried out subsequently by the exploiter.
What Does Staking Involve?
Staking is a process wherein the rewards are earned. This is done by locking up the Ether coins to help secure the Ethereum network. Lido, a crypto protocol, offers liquid avatars of the locked-up tokens for flexible and easier access to the staked rewards.
Lido is a top decentralized project with a total value of crypto that has been sent to the platform. DeFi Llama assesses that in Lido, the total locked-up value of crypto is $8.25 billion.
It may be noted that between the DeFi blockchain network and Solana, Wormhole is a bridge for communication. In the past year, hackers were found stealing approximately $320 million from it, which was one of the biggest thefts ever. The trading giant Jump’s crypto department refunded the losses. The Jump’s crypto division is a huge force behind Wormhole.
