20 million OP stolen Market maker response: 100% full responsibility, will buy back the OP sold by hackers and try to recover it
Wintermute
On June 9, Optimism announced on social media that 20 million OP's have now been taken over by hackers due to communication and technical missteps in a partnership with cryptocurrency market maker Wintermute. At first, the Optimism Foundation sent 20 million OP to Wintermute for market making. Later, Wintermute realized that the address it provided was Layer1. Before Wintermute switched to Layer2, The attacker has preempted it by deploying it with different initialization parameters. So far, hackers have sold about 1 million stolen OP.
Wintermute responded on social media, saying the team had made a serious mistake
Around the purse 0 x4f3a120e72c76c22ae802d129f599bfdbc31cb81 events, Wintermute did explained as follows:
Event schedule
Two weeks ago, the Optimism Foundation hired Wintermute to provide liquidity to its OP token listed on a centralised trading platform. As part of the deal, Wintermute received 20 million OP units.
Initially, 20 million OP units will be deployed in Wintermute's Optimism Wallet. When we communicated the wallet address to the Optimism team, we made a serious mistake. We deployed Gnosis Safe on the main network for some time and, due to an internal error, we used the same wallet as the receiving address. However, unlike a regular wallet, having control of the main network Safe does not guarantee control over other EVM compatible chains.
We notified the Optimism team on May 30. As the Launch was confirmed the next day, we agreed to receive an additional 20 million OP ($50 million as collateral) while exploring ways to get the money back. In the meantime, we contacted the Gnosis Safe team and asked for their assistance in recovering the funds. After consultation with the Optimism and Safe teams, Wintermute assessed that the funds were likely to be recovered and that no one but Wintermute could recover the funds. It was also assessed that this was a high-risk retrieval that could only be attempted once and required Safe support. Remediation is scheduled for June 7. However, the assumption that the money could only be recovered by Wintermute proved wrong.
The development of
In we will notify Safe and Optimism, however, less than 24 hours after wallet 0 x8bcfe4f1358e50a1db10025d731c8b3b17f04dbb has obtained funding through Tornado Cash. It attacks by resetting the Gnosis Safe MasterCopy 1.1.1 deployment on the ETH main network. Then, they use contract previously deployed 0 xe7145dd6287ae53326347f3a6694fcf2954bcd8a to deploy the coffers. The hacker then went on to sell 1 million OP tokens for ETH and bridge back to L1 via Synapse and Hop before using Tornado Cash on the main network.
What do we plan to do about it
As of this writing, the attacker still has 19 million OP tokens. We're not sure why they chose not to liquidate all at once. There is hope that this is a white hat loophole, in which case the remaining funds may be recoverable. However, we have not received any information from them, and our messages on the chain have not been answered.
We want to make one thing clear -- the original bug was 100% Wintermute's fault, so we will be buying every time an attacker sells an OP (we did start buying the millionth OP token yesterday). We know it may cause price fluctuations in tokens and will do our best to minimize the impact.
A message to the hackers
We want to think of it as a white hat exploit. We can even consider consulting opportunities or other forms of collaboration in the future, with the hope that the remaining 19 million tokens will return to the Optimism wallet
0 x2501c477d0a35545a387aa4a3eee4292a9a8b3f0.
You have one week to consider, and if that doesn't happen, we are 100% committed to returning all the money, tracking down the attackers, fully testing them and handing them over to the appropriate justice system.
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