When it comes to technology, hackers are unpreventable, especially in the cryptocurrency’s ever-thriving market. Recently, hackers have been more engaged in crimes with larger and larger damages in the crypto field. The working field is not stopping at only exploiting individual assets by hacking crypto wallets, and NFTs, but now, it has transformed into big brothers in the market, including Wintermute - one of the most well-known crypto market makers far and wide.Since the mentioned figure is a big player in crypto, its suffer from recent exploits will somehow bring negative effects to regular market participants. Let’s find out on <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a> how profound the impact of the Wintermute hack is and get fully aware of what can come next.<img src="https://cdn.builder.news/news/11ed3e1a8b495f38a8e6023f659fee92.jpg" alt="after wintermute hack" title="after wintermute hack" width="600" height="334"><h2>Summary of the Wintermute’s recent exploit</h2>On September 20th, a wave of cyberattacks spread throughout the decentralized financial ecosystem affecting Wintermute, which transacts millions of dollars daily across several crypto platforms. In exact, the exploited amount from the hack was reported to reach $160 million in total. The exploit was caused to happen to the money on DeFi operations, therefore, money on centralized exchanges and over-the-counter offers were unaffected."We are solvent with twice over that amount in equity left," according to Gaevoy - CEO and Founder of Wintermute. "If you have a MM agreement with Wintermute, your funds are safe. There will be a disruption in our services today and potentially for next few days and will get back to normal after."<blockquote class="twitter-tweet">If you have a MM agreement with Wintermute, your funds are safe. There will be a disruption in our services today and potentially for next few days and will get back to normal after— wishful cynic (@EvgenyGaevoy) <a href="https://twitter.com/EvgenyGaevoy/status/1572134280611995650?ref_src=twsrc%5Etfw">September 20, 2022</a></blockquote>To elaborate more, Gaevoy said that 90 assets had been taken, 2 token quantities ranged in value from $1 million to $2.5 million, with the remaining tokens being valued at less than $1 million. In reaction to this hack attack, the market maker Wintermute considers this a white hat hack. The firm willingly offered to the hackers that if they returned the remaining funds, the company would allow them to keep a portion of the money as a bug reward.After announcing the statement, there have not been any new updates on the offer and we can implicit that Wintermute does not consider this as a huge loss to the company as well as to investors. It’s good to know cause we have suffered enough from 3AC, Voyager, and Celsius in the <a href="https://www.builder.news/crypto-insights/h1-2022-crypto-report" alt="h1 2022 crypto report" title="H1 2022 Crypto report: What comes along the global chaos?" target="_blank" rel="" class="">first half of 2022</a> already.However, does the Wintermute’s hack damage stop there? Maybe not.&gt;&gt;&gt; Read more:&nbsp;<ul><li><a href="https://www.builder.news/crypto-insights/what-role-did-celsius-play-in-the-recent-market-crash" alt="What role did Celsius play in the recent market crash?" title="What role did Celsius play in the recent market crash?" target="_blank" rel="" class="">What role did Celsius play in the recent market crash?</a></li><li><a href="https://www.builder.news/crypto-insights/the-insolvency-of-three-arrows-capital-0L9N1" alt="Three Arrows Capital insolvency" title="Three Arrows Capital - The insolvency of one of the most significant hedge funds" target="_blank" rel="" class="">Three Arrows Capital - The insolvency of one of the most significant hedge funds</a></li></ul><h2>How massive is the impact of the Wintermute hack</h2>There are more than just buyers and sellers participating in the financing market. <a href="https://www.builder.news/earn/how-important-are-market-makers" alt="market makers" title="How important are market makers?" target="_blank" rel="" class="">Market makers</a> are inevitably important to cryptocurrency market development. This group of players helps ensure enough trading volumes where transactions can be done seamlessly. Prominent crypto individuals often take an extremely close look at these figures, especially their moves in providing cryptocurrency liquidity. Wintermute’s hack raises the question if it has a profound impact on the crypto market, especially in terms of liquidity.Besides providing over-the-counter (OTC) services, being ventures, Wintermute is most famous for its market-making service whose goal is to support top-notch projects to enhance liquidity by helping them get listed on exchanges (both decentralized and centralized). Every aspect of liquidity is assisted by Wintermute, including token bridging and off-exchange trades. On controlled and <a href="https://www.builder.news/crypto-insights/best-decentralized-exchanges-to-follow" alt="best decentralized exchanges" title="7 best decentralized exchanges to follow" target="_blank" rel="" class="">decentralized trading platforms</a>, Wintermute assists in the creation of liquid and effective markets.<img src="https://cdn.builder.news/news/11ed3e1a8b49679ba8e6023f659fee92.jpg" alt="Wintermute" title="Wintermute" width="600" height="400">In the context of cryptocurrencies, liquidity refers to how quickly a digital currency or token may be exchanged for cash or another digital asset without affecting its price. A market with plenty of liquidity is a sign of a healthy market since liquidity is a measure of the external demand and supply of an asset. Additionally, all else being equal, a cryptocurrency or digital asset should be more stable and less volatile the more liquidity it is accessible.&gt;&gt;&gt; Check out:&nbsp;<a href="https://www.builder.news/crypto-insights/best-altcoins-to-buy" alt="Best altcoins to buy in the market volatility" title="Best altcoins to buy in the market volatility" target="_blank" rel="" class="">Best altcoins to buy in the market volatility</a>When market markers like Wintermute fail, the market’s liquidity decrease somehow and the widening of spreads is the worst thing that can happen to tradable assets. Users are barely aware of this change cause algorithms seem to make things more secret. These algorithms act as intermediaries to cover buying activities via trades and price arbitrage. Algorithmic enterprises like Wintermute use sophisticated modeling and trading software to employ a variety of methods, including arbitrage, derivatives, and colocation servers for high-frequency market access, to gain an advantage over conventional traders.Wintermute offers market-making services in addition to conventional proprietary desk trading by enabling transactions on intermediaries using their own assets. Exchanges, brokers, token issuers, or other parties like foundations and supporting businesses may hire these services. Wintermute’s failure in controlling its ability to provide liquidity might expand to these organizations as a domino effect.<img src="https://cdn.builder.news/news/11ed3e1a8b496be8a8e6023f659fee92.jpg" alt="liquidity" title="liquidity" width="600" height="400">&gt;&gt;&gt; Related:&nbsp;<a href="https://www.builder.news/crypto-insights/defi-hacks-and-heists-hsfBc" alt="10 Biggest DeFi Hacks and Heists" title="10 Biggest DeFi Hacks and Heists" target="_blank" rel="" class="">10 Biggest DeFi Hacks and Heists</a><h2>Don’t be too optimistic</h2>We cannot compare the failure of Voyager, Celsius, and 3AC to Wintermute’s case, because it is not too serious what was going on. There are currently no signs that a significant danger has surfaced, but traders should continue to monitor the markets until a thorough investigation is completed and similar risks are eliminated. Don’t let yourself be surprised as you ain’t aware of the possible warning signs.<div class="pr-block-special">Disclaimer: This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Check out how profound the impact of the Wintermute hack is and get fully aware of what can come next.

After Wintermute hack, are your funds truly safe?