Fallout Digital Provident Man CEO

Well knock me down with a feather, it's yet another $160 million crypto hack

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2022 has so far been something of an annus mirabilis for the crypto sector, which in the macro picture has been struggling with the fallout of the gigantic collapse of the Terra ecosystem, while on the micro scale crypto companies of all stripes have suffered hack after hack.

The latest is Wintermute, which is a crypto market maker. The exact way these things operate is complicated, but boils down to their providing liquidity for certain defined cryptocurrencies by both buying and selling them on crypto exchanges: market makers exist in plenty of other industries outside of crypto, and turn a profit by collecting what's called the bid-ask spread over multiple bets.

All that really matters for our purposes is this: Wintermute holds a lot of crypto, and now it's been hacked and holds much less (thanks, the Register). «We’ve been hacked for about $160M in our defi [decentralised finance] operations,» Wintermute CEO Evgeny Gaevoy writes. «Cefi [centralised finance] and OTC [over-the-counter] operations are not affected.» Gaevoy is surprisingly blase about the whole thing, which is typical of this sector: crypto CEOs tend to remain bullish until the whole thing explodes.

Indeed, Gaevoy says there's nothing to worry about. He goes on to say that customer funds are safe, that Wintermute remains financially solvent and retains a large amount of equity, and that it's in a position to repay lenders who are worried.

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