In the early hours of November 28, 2022, a crypto enthusiast revealed some information regarding the recent wETH depeg on Twitter.
🚨 weth hack went unnoticed since 2019
after investigating more than 90 million deposit and withdrawal events, i've found a supply discrepancy between the total supply weth contract reports and the actual outstanding weth. pic.twitter.com/7ySQW0AlKv
— banteg (@bantg) November 28, 2022
He further claimed that after carefully examining 90 million transactions, withdrawals, and deposits, he had found that there was a discrepancy between the total supply reports and the outstanding wETH balance, indicating that wETH has been unknowingly exploited since 2019.
The user explained two ways for the possible hack to occur. First, from his research, he found out the hacker was able to send Ethereum without alarming the smart contract, and in his tweet, he explains that there are two ways to go about it.
It could either have been done by a hacker who set it up as a block reward recipient, which will only update the state and not start a contract.
Or self-destruct, which automatically destroys all smart contracts and sends the ETH to another address without triggering the contract.
Bang believes the hacker used the latter, and if his calculations are correct, then the wETH loss in value was no accident but a masterfully crafted con. This is not the first time such a thing has happened in the crypto industry.
Before wETH, the most recent hack was on Aave when a crypto trader tried to exploit a position on the network. However, it didn’t succeed and left the platform with debts up to $1.6 million.
The hacker was also reported to be responsible for the Mango Market hack, incurring a $100 million debt for the Solana-based platform.
Another example is the FTX exchange and its sister platform, Alameda Research, which went bankrupt a few weeks ago after it was accused of mishandling customers’ funds and fraud, which turned out to be true.
However, a day after its CEO, Sam Bankman Fried, filed for bankruptcy and resigned, FTX was hacked overnight, resulting in a loss of over $600 million on the platforms and users’ funds.
Nevertheless, some believe it was a last-minute move by the ex-CEO or by one of his developers not to leave empty-handed or complete his fraud scheme.
But there is presently no concrete evidence to back up that claim. Therefore, it remains the activity of an anonymous hacker as far as the facts are concerned.
Although the public is not yet aware of the hack or shortage of that part, it is clear that in the coming months the event’s true nature will come to light.