- The hacker used an Ethereum-based exploiter contract to transfer funds to Optimism
- The exploit coincides with a considerable downturn across the broader crypto market
- Over $2 billion was stolen from DeFi protocols via bridge exploits in 2022
A bridge exploit targeted Exactly Protocol, a decentralized credit market on the Optimism blockchain, and it sustained damage of around $12 million as a result, CoinDesk reported.
The hacker used an Ethereum-based exploiter contract to transfer funds to Optimism before moving them back to Ethereum. At current prices, the amount lost is equal to 7,160 ether (ETH).
EXA, the protocol’s native token, lost more than 12% of its value following the exploit, CoinMarketCap data shows.
Hack coincides with significant market downturn
The exploit coincides with a considerable downturn across the broader cryptocurrency market. Cryptocurrencies such as LTC, XRP, and BCH are leading double-digit losses. The market has seen around $1 billion in long-position liquidations since Thursday.
An increasingly common attack vector
Hackers have made cross-chain bridges a common attack vector because they use relatively new and vulnerable technology. Over $2 billion was stolen from DeFi protocols via bridge exploits in 2022.
Top 3 bridge hacks to date
The most recent major such hack was of cross-chain bridge Multichain. It registered outflows of almost $130 million worth of different tokens across its platforms on Dogechain, Moonriver, and Fantom blockchain networks on July 6. The following day, it confirmed that an exploit had impacted $130 million in tokens supplied by users.
Wormhole Bridge lost $320M in ETH
Early last year, $320 million worth of Ethereum was stolen by hackers who targeted Wormhole Bridge, a popular cross-chain protocol that links the Solana and Ethereum networks. This makes it one of the largest decentralized finance exploits to date.
Ronin Bridge lost ETH and USDC worth $600M
Finally, a hacker or group of hackers stole ether and USDC from Axie Infinity’s Ronin Bridge on March 23, 2022. They used social engineering tactics to steal the funds from the bridge, which connects the Ethereum Mainnet to the Ronin Network.
The cybercriminals compromised private validator keys and stole 173,600 ether and 25.5 million USDC tokens, worth more than $600 million at the prices back then.
