The price drop came after Wormhole was exploited on Wednesday night. Wormhole confirmed the exploit in a tweet during early Asian hours on Thursday. Wormhole also said that it will add ether over the next hours to ensure wrapped ether – a representation of ether on Solana – was backed on a 1:1 basis with ether to prevent malfunctioning of decentralized finance applications.
Attackers stole over 120,000 wETH by tricking a series of smart contracts on Solana to digitally ‘sign’ on an illicit transaction, as“The attacker could effectively lie about the fact that the signature check program was executed. The signatures weren't being checked at all,” explained Ethereum developer Kelvin Fichter in a tweet. Signature checks are an automatic step used by Wormhole to verify transactions between networks.
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