In a remarkable counter-exploit effort, Jump Crypto and Oasis have successfully reclaimed approximately 120,000 ETH (worth $325 million at the time) stolen during the February 2022 Wormhole bridge hack—one of the largest DeFi breaches in crypto history.
The Wormhole Hack: A Recap
On February 3, 2022, hackers exploited a vulnerability in the Wormhole cross-chain bridge, draining funds across Ethereum and other supported networks. Key details:
- Loss: 120,000 ETH (~$325M).
- Response: Jump Crypto pledged 12M ETH to cover losses, ensuring Wormhole’s continuity.
- Bounty Offer: Wormhole proposed a $10M bounty for the hacker’s surrender—ignored.
👉 Learn how cross-chain bridges work
The Recovery Operation
Blockworks Research analyst Dan Smith outlined the covert recovery process:
1. Chain of Events
- Oasis Multisig: Proxy contracts were leveraged via a court-authorized upgrade.
- Sender Wallet: Executed 5 transactions to transfer collateral/debt from hacker vaults.
- Holder Wallet: Secured recovered funds (linked to Jump).
2. Critical Moves
- DAI Repayment: Jump-funded wallet injected 80M DAI to clear vault debt.
- Collateral Withdrawal: $218M in ETH-based collateral extracted.
- Net Gain: ~$140M (after DAI reimbursement).
“Public blockchains’ transparency aided tracking—proof that crypto’s openness combats crime.”
Key Players
| Entity | Role |
|--------|------|
| Jump Crypto | Funded recovery; repaid debts. |
| Oasis | Court-mandated multisig actions. |
| Court Order | Enabled legal asset seizure. |
Ethical and Legal Implications
While the recovery sets a precedent, debates arise:
- Legality: Court-approved actions vs. decentralized ethics.
- Hacker’s Mistake: Forfeiting $10M bounty for criminal status.
👉 Explore DeFi security best practices
FAQ Section
1. How was the ETH recovered?
Through a counter-exploit targeting Oasis’ upgradable contracts, authorized by a UK court.
2. Did Jump Crypto profit?
Yes—$140M net gain after reimbursing DAI loans.
3. Why did Oasis cooperate?
Compliance with a High Court order mandating asset recovery.
4. What’s the lesson for DeFi?
Transparency enables crime resolution but requires legal frameworks.
Conclusion
This operation highlights crypto’s dual nature: vulnerable to exploits yet uniquely traceable. Jump Crypto’s victory underscores the industry’s resilience—and a warning to future attackers.
ChainCatcher reminder: Always assess blockchain risks rationally. Report sensitive content here.
### **SEO Keywords**:
1. Wormhole hack
2. Jump Crypto
3. Oasis recovery
4. ETH stolen
5. DeFi security
6. Cross-chain bridge
7. Counter-exploit