Wallets linked to Coinbase and Vitalik Buterin have millions ‘stuck’ in bridge contracts

Approximately fifty to one hundred cryptocurrency “whale” wallets, holding between six and seven figure value in assets, are currently unable to withdraw their funds from various Decentralized Finance (DeFi) bridge contracts.

One of the whale wallets is connected to Ethereum co-founder Vitalik Buterin, holding more than a million dollars’ worth of assets that have been stuck in there for over seven months. A handful of other wallets contain assets that have gone unclaimed for over two years.

A cryptanalysis firm called Arkham Intelligence has reported that some well-known crypto investors and organizations have had their funds trapped in bridge contracts for up to two years, according to their findings.

Wallets linked to Coinbase and Vitalik Buterin have millions ‘stuck’ in bridge contracts

DeFi bridge contracts are software protocols that allow the movement of assets and data between different blockchain networks, enabling interoperability within the DeFi ecosystem.

On the contrary, not every DeFi bridge operates similarly. Some serve as cross-chain connections, allowing users to seamlessly transfer assets between chains without manual intervention.

Instead, traders utilizing native bridges are required to personally withdraw their funds since smart contracts cannot prompt users to do so. This may lead to instances where users unintentionally leave their funds behind.

Notable wallets, such as thomasg.eth’s which holds $800,000 trapped in Arbitrum Bridge for a period of one year and ten months, and Bofur Capital’s containing approximately $1.8 million in 27 wrapped Bitcoins, have been immobilized for two years and three months.

Just like Mike Macdonald’s other NFT wallet, there is approximately $117,000 worth of assets connected to sales of CryptoPunks on a bridge contract.

If you’re the owner of the account that transferred five CryptoPunks, you may also be in charge of the account where the funds from their sale were received. Arkham recommends checking both accounts.

A wallet holding approximately 50 Ether (ETH) from Vitalik.eth has remained untouched for seven months, accumulating a value of around one million dollars in ETH on the Optimism bridge.

Wallets linked to Coinbase and Vitalik Buterin have millions ‘stuck’ in bridge contracts

An additional Coinbase crypto exchange wallet holding approximately $75,000 in assets, which had been stationary for almost half a year, was uncovered.

Arkham believed that Coinbase inadvertently transferred $75,000 in USDC tokens to the Optimism Ethereum bridge for conversion to ETH, but failed to follow through with the claim. These assets now remain trapped within the Optimism bridge contract.

Arkhm Research reached out to the owners of stranded and overlooked whale funds, asking them to claim their assets if they were unaware they existed. The team additionally emphasized that such occurrences are a common aspect of using native bridges.

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2024-04-23 12:40