Ethereum-based Origin Puts $1 Million Bounty on OUSD Hacker

In letter

  • OUSD, a stablecoin issued by the Origin Protocol, was hacked with $ 7 million earlier this week.
  • Now the company is putting up a $ 1 million (that’s USD, not OUSD) reward for anyone who can bring the hackers to justice.
  • The price per OUSD, which should be $ 1.00, is only 14 cents.

The Ethereum-based stablecoin OUSD was hacked earlier this weekAccording to a blog post by the coin issuer Origin Protocol, this results in “a loss of money of around USD 7 million”.

Now the company is offering a reward for anyone who can identify the attackers. “We are offering a $ 1,000,000 award to anyone who provides material information or evidence leading to the return of customer funds,” wrote Josh Fraser, co-founder of Origin Protocol in an update to the company’s original post.

The update continues to speak directly to the hackers, suggesting that they can keep Origin’s stake in the money (around $ 1 million) and avoid legal action if they return the roughly $ 6 million to public investors belonged. “Remember, take from those who have less,” reads the post. “If you look at the wallet addresses that had OUSD on, you will see that many of our users are not degens or whales. Keep Origin’s funds but don’t punish our users, many of whom were new to cryptography . “

Kay Yoo, Head of Business Operations and Strategy at Origin, worked out via email. “We don’t care if the hacker returns company funds or the personal investments of our founders,” she said Decrypt. “Our top priority right now is recovering customer funds.”

According to the company, the attacker used a flash loan to start the hack and eventually washed the stolen funds through a blender service called Wrapped bitcoin (WBTC) and renBTC, which are Bitcoin proxies on the Ethereum blockchain.

Money laundering seems to be a fairly common use case for the mixing of services where normal transactions on the blockchain are encrypted in such a way that they are essentially no longer traceable. This is a handy service if you are concerned about privacy, but also if you are trying to do illegal things with digital money.

The people who hacked Twitter last summer used a blender called a Wasabi Wallet to accomplish the same thing. A representative for wasabi told Decrypt earlier this month While the service can be used to commit crimes, it is “not intended for criminals to launder money”. So kind of like uTorrent.

The price per OUSD that is generally should sit at around $ 1, dropped to just $ .54 and is after the attack now only $ .14. Trading volume has been at $ 0 since Tuesday when Origin attached an update to its blog post urging users to stop buying and selling OUSD.