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> The wallet in question appears to have sent 401,346 ETH ($1.1 billion) as well as several other iterations of staked ether (stETH) to a fresh wallet, which is now liquidating mETH and stETH on decentralized exchanges, etherscan shows. The wallet has sold around $200 million worth of stETH so far.
If you showed me a paragraph like this a decade ago and told me it was from 2025, I would have a difficult time believing you.
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A "cleverly masked exploit that altered the smart contract logic"[1] = congratulations!! the contract gives you $1.46B free money!!
I anticipate that the defi community will celebrate the inexorable operation of their logical contracts.
[1] https://cryptonews.com/news/bybit-crypto-exchange-faces-1-5-...
It's obviously not a cold wallet if it's connected to the exchange.
Every pseudo-intellectual thinks that the fiscal world is "too complicated" and they're going to "simplify" it by making some token, only for people to realize that the monetary world is just complicated, and they have to reinvent everything that already existed in the traditional banking system.
I had to do some work on an ACH system a couple years ago [1], and I read through a large chunk of the ACH standard, which was about 800 pages. It's easy to see and hear that and think "that's way too complicated, what could possibly be so hard about money transfers that necessitates an 700 page specification??", but as I read it and saw how many edge cases it took into account, it was easy to see why it got so huge. It turns out that dealing with money is just a really hard problem at scale.
I fell for the cryptocurrency hype of 2021, and I will fully acknowledge that that came out of a complete lack of understanding of how fiscal systems work. I wish everyone else would just grow up already.
[1] Usually disclaimer: not hard to find my work history, it's not hidden, but I ask that you do not post anything about it (or at least any proper nouns about it) here.
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In this case yes - everything went by the design and law of the underlying code. There was no exploited bug or vulnerability flaw besides human laziness here. 1) Their multi-signature wallet signing employees lazily clicked through in unison to approve a new smart contract without examining the contents to see if it was unusual. 2) Bad security architecture to keep too much in a single wallet that wasn't properly kep…
when code is law, there can't be any bugs or vulnerabilities, only features.
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When you decentralize finance like this what becomes okay to do according to system rules is exactly what is possible to do according to system rules. We don't have humans in that loop anymore to enforce moral judgments about what constitutes unlawful theft (except for 1 or 2 rare "hard-forks" of various blockchains to reverse devastating transactions).
I feel bad for people who lose large volumes of cryptocurrency to malicious actors in the same way I feel bad for people who lose large volumes of real money to a casino.
It is 2025 now and we all know that anyone who can somehow get your private-key to whatever blockchain backed assets you have "owns" those assets just as much as you do and they are permitted to take them under the rules of the system so whatever you do do not lose that key.
There is no higher arbiter of justice in this space so use it at your own risk.
Society has devolved a bit when not long ago a heist like this would involve sieging Nakatomi Plaza, now it takes just finding a bug in someone's defective Python codes.