Wormhole’s parent company has stepped...

Wormhole’s parent company has stepped in to prevent chaos across the Solana DeFi landscape.

The attacker moved the majority of the funds to the Ethereum main chain, while keeping 40,000 wrapped ETH on Solana and trading portions of that ether for other assets.

. After one of the most devastating exploits in crypto history, the parent company for a popular cross-blockchain bridge has reportedly stepped in to backstop funds – a move that may have prevented widespread damage in the Solana decentralized finance (DeFi) ecosystem.

Blockchain bridges often work by locking an asset into a smart contract and issuing a parallel, “wrapped” asset on another chain. After publication of this article, Jump confirmed the move in a tweet:

The unbacked ETH briefly appeared as if it might lead to chaos across popular Solana platforms. Because the exploit minted wrapped ETH, it left Wormhole’s real ETH reserves unbacked. On Thursday, three people familiar with the matter confirmed to CoinDesk that Jump Trading is responsible for replenishing the lost ETH.

"If nobody backs it and the coins are truly gone then Wormhole ETH is worth [zero] and everyone who has a balance of it becomes worthless, DeFi protocols, users, everyone," he said.

However, Harrap said that he expected Jump Trading, a large crypto venture capital and trading firm that purchased Wormhole developer Certus One in August, to step in to back the lost ETH.

Restored:

In a tweet this morning, Wormhole confirmed that funds had been restored and that the bridge’s operations had resumed after the attack vector had been patched:..... 

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