📰 Table Of Contents
Cryptowire Reveals Millions of Dollars Stuck in Crypto Bridge Contracts
Blockchain intelligence firm Arkham has discovered several crypto addresses containing millions of dollars that are either “stuck” or “forgotten” in two major bridge contracts.
Accounts with Significant Funds Trapped in Bridge Contracts
- Accounts connected to Ethereum co-founder Vitalik Buterin, cryptocurrency exchange Coinbase, and various DeFi whales have funds trapped in bridge contracts.
- Arkham substantiated its findings by providing screenshots of fund transfers to and from the Arbitrum and Optimism bridges.
Notable Cases of Funds Stuck in Bridge Contracts
One notable case highlighted by Arkham involves a wallet that received 50 Ether (ETH) from Buterin, with $1.05 million stuck in the Optimism bridge for the past seven months. However, if the wallet does belong to Buterin, this amount represents only a small fraction of his $789 million cryptocurrency portfolio, according to Arkham’s data.
Another instance includes a wallet associated with Bofur Capital, potentially related to a Celsius creditor, which has $1.8 million in wrapped-Bitcoin (WBTC) trapped in the Arbitrum bridge for the past 27 months. Additionally, a wallet owned by Thomasg.eth, the pseudonymous founder of decentralized air transportation solution Arrow, has $800,000 worth of Ether stuck in the Arbitrum bridge.
Challenges and Security Concerns in Cross-Chain Bridges
Cross-chain bridges play a crucial role in modular blockchain networks like Ethereum, offloading transaction responsibilities to layer 2 solutions while prioritizing data availability and security on the base layer. However, bridges have become attractive targets for hackers due to potentially vulnerable smart contracts or centralized validator sets.
An example of this is the $650 million Ronin bridge hack orchestrated by North Korea’s state-backed Lazarus Group, which obtained access to five out of nine private keys held by transaction validators in March 2022.
Arkham Intel Exchange: A Decentralized Marketplace
Last year, Arkham unveiled the Arkham Intel Exchange, which it called the world’s first on-chain “intelligence marketplace.” The platform creates a new way for people to share and trade blockchain-related intelligence, providing a new market and opportunity for on-chain researchers.
Arkham’s Intel Exchange connects buyers and sellers of on-chain intelligence through a bounty mechanism, allowing users to request specific on-chain information by placing bounties that are fulfilled by experienced blockchain researchers.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
