High-Value Crypto Wallets Trapped in DeFi Bridge Contracts: Report Reveals Forgotten Millions
Summary:
Several high-value cryptocurrency wallets are trapped in decentralized finance (DeFi) bridge contracts, some for up to two years. One affiliated with Ethereum co-founder Vitalik Buterin has had over $1 million stuck for more than seven months. Bridge contracts allow asset and data movement between different blockchain networks. However, users of native bridges, unlike cross-chain bridges, must manually retrieve their funds. Some well-known cases include a wallet tied to thomasg.eth with $800,000 trapped for nearly 2 years, and another linked to Coinbase containing $75,000 stuck for six months. The crypto analytics firm, Arkham Research, has alerted those with immobilized and forgotten funds to reclaim them.
Numerous sizable cryptocurrencies, including some in the six to seven figures, are stranded on various decentralized finance (DeFi) bridge contracts. An example includes a wallet linked to Ethereum co-founder Vitalik Buterin, who has had over one million dollars of assets trapped for longer than seven months. Some wallets even have assets unclaimed for over two years.
According to Arkham Intelligence, a crypto analytics firm, some prominent whale addresses associated with major crypto figures and organizations have been immobilized in these bridge contracts for up to two years. ArkhamDeFi bridge contracts are software tools that enable asset and data movement across different blockchain networks, fostering interaction in the DeFi landscape.
However, different DeFi bridges have dissimilar functions; cross-chain bridges allow users to automatically recover their assets from another chain. Conversely, users of native bridges have to manually retrieve their funds, as there are no automatic reminders, potentially causing users to misplace their funds.
Several cases stand out, such as a wallet linked to thomasg.eth that has had $800,000 immobilized in the Arbitrum Bridge for almost two years. Similarly, a wallet tied to Bofur Capital with 27 wrapped Bitcoin, equivalent to $1.8 million, has been trapped for over two years. A wallet associated with nonfungible token (NFT) user Mike Macdonald has roughly $117,000 linked to CryptoPunks sales on a bridge contract. Arkham recommended the account owner inspect the account, on the basis of having "sold 5 CryptoPunks."
Another wallet, which previously received 50 Ether (ETH) from Vitalik.eth, appears to have been neglected for seven months and currently houses nearly $1 million worth of ETH on the Optimism bridge. A wallet linked to the Coinbase crypto exchange was also highlighted, holding $75,000 in assets that have been stranded for almost six months. It's speculated by Arkham that Coinbase may have forgotten about an attempt to bridge $75,000 worth of USDC to ETH. The assets are now idle on the Optimism bridge contract, awaiting claim.
Arkham Research issued reminders to the whale accounts linked to these immobilized and overlooked funds to reclaim them. They further reminded the community that such occurrences happen due to the inherent nature of these native bridges.
Published At
4/23/2024 12:30:37 PM
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