Unclaimed Funds Found in DeFi Bridge Contracts
Arkham Intelligence, a crypto analytics firm, has recently discovered a surprising trend within the decentralized finance (DeFi) space. Millions of dollars in various cryptocurrencies are lying unclaimed in different bridge contracts. These funds belong to both well-known cryptocurrency figures and lesser-known entities, remaining stuck for periods ranging from several months to over two years.
Key Findings on Unclaimed Funds
- Arkham Intelligence uncovered millions of dollars in cryptocurrencies stuck in bridge contracts.
- Several notable wallets linked to prominent crypto individuals and entities have funds trapped in these contracts for up to two years.
- For instance, a wallet associated with Vitalik Buterin holds over $1 million worth of assets stuck in the Optimism bridge for more than seven months.
- Other affected entities include Bofur Capital, NFT user Mike Macdonald, and a wallet linked to Coinbase.
- Unlike cross-chain bridges, native bridges necessitate manual retrieval of funds, leading to cases where users forget about their assets.
The Significance of DeFi Bridge Contracts
DeFi bridge contracts play a crucial role in the ecosystem by facilitating the movement of assets and data across different blockchain networks. They promote interoperability among various platforms. However, not all bridges operate in the same manner. While some bridges automatically transfer assets, native bridges require users to manually withdraw their funds, resulting in situations where assets are forgotten and left stranded in these contracts.
GM
There are dozens of accounts with 6-7 figures stuck in bridge contracts, forgotten about.
These include prominent DeFi whales and even an account connected with @vitalikbuterin.
If you’re on this list, you may have misplaced a few million dollars.
Don’t worry – it happens. pic.twitter.com/YaLb5pjtzF
— Arkham (@ArkhamIntel) April 22, 2024
Prominent Cases of Unclaimed Assets
One notable case highlighted by Arkham involves a wallet connected to Ethereum co-founder Vitalik Buterin. This wallet received 50 Ether (ETH) from Buterin and has had over $1 million worth of assets stuck in the Optimism bridge for more than seven months. While this amount is a small fraction of Buterin’s overall cryptocurrency holdings, it underscores the magnitude of the issue.
Other prominent entities affected include Bofur Capital, potentially representing a Celsius creditor, with $1.8 million in wrapped Bitcoin (WBTC) trapped in the Arbitrum bridge for 27 months. Additionally, an NFT user known as Mike Macdonald seems to have neglected to claim around $117,000 in assets from CryptoPunks sales on a bridge contract.
Connected to @vitalikbuterin (receives 50 ETH from vitalik.eth)
Amount stuck: $1.05 Million
Time stuck for: ~7 months
Address:https://t.co/0m6w8bQ5o0Vitalik, if you own this address, PSA: you have a million dollars of ETH in the Optimism bridge. pic.twitter.com/AWMUbCKGJ5
— Arkham (@ArkhamIntel) April 22, 2024
Expanded Scope of Unclaimed Wallets
Arkham has identified numerous accounts with six to seven-figure sums stranded in bridge contracts, abandoned by their owners. For instance, a wallet under the ENS name thomasg.eth has left roughly $800,000 in the Arbitrum bridge for nearly two years.
Even a major cryptocurrency exchange like Coinbase has been impacted by this trend. Arkham reported that Coinbase tried to bridge $75,000 in USD Coin (USDC) to Ethereum via the Optimism bridge half a year ago, yet the funds remain unclaimed on Ethereum’s base layer.
While some wallet owners might have intentionally left their funds in these contracts, the vast amount and duration of unclaimed assets indicate that many users have simply forgotten about them. Arkham advises all involved parties to review their transaction history and bridge activities to ensure all assets are acknowledged.
The firm has contacted the owners of the affected wallets, reminding them of the potential millions they could have misplaced.
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