In a surprising revelation, blockchain intelligence firm Arkham has uncovered millions of dollars worth of cryptocurrencies lying dormant in various decentralized finance (DeFi) bridges. These bridges facilitate the transfer of assets between different blockchain networks, but it appears that some users have either forgotten about or intentionally left their funds untouched in these contracts.
TLDR
- Blockchain security firm Arkham has discovered millions of dollars stuck or forgotten in various DeFi bridges.
- Some of the stuck funds are associated with prominent figures like Vitalik Buterin (Ethereum co-founder) and crypto exchanges like Coinbase.
- Significant amounts, including $1 million in Optimism bridge and $2 million in Arbitrum bridge, have remained unmoved for months or even years.
- The forgotten funds could be due to users losing access to their wallets or intentionally leaving them untouched for future use.
- Arkham urges individuals and entities involved to review their transaction histories and bridge activities to ensure all assets are accounted for.
According to Arkham’s findings, a significant portion of the stuck funds is associated with high-profile individuals and entities within the crypto space. One particular wallet, which previously transacted with Ethereum co-founder Vitalik Buterin, has over $1 million stuck in the Optimism bridge for the past seven months. While it’s highly unlikely that Buterin himself has lost access to these funds, given his net worth of around $800 million, the discovery highlights the potential for even prominent figures to overlook or misplace their crypto holdings.
Another noteworthy case involves a DeFi whale with close to $2 million in wrapped Bitcoin (WBTC) left untouched on the Arbitrum bridge for more than two years. Similarly, an address linked to an entity named Bofur Capital has around 27 WBTC (valued at approximately $1.8 million) that has not been moved from the Arbitrum bridge for over two years.
Arkham’s research also revealed that crypto exchange Coinbase attempted to move $75,000 through the Optimism bridge six months ago, but the transaction remains incomplete. This instance raises concerns about the potential loss of funds or operational inefficiencies within even established crypto companies.
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
While the reasons behind these forgotten or stuck funds remain unclear, Arkham suggests two potential scenarios. The first possibility is that users have lost access to their wallets or forgotten about their holdings in these bridges. The second scenario is that some individuals or entities may have intentionally left their funds untouched, perhaps as a strategic move or for future use.
Regardless of the underlying causes, the presence of millions of dollars worth of cryptocurrencies lying dormant in DeFi bridges highlights the complexities and potential pitfalls associated with navigating the decentralized finance ecosystem. As the adoption of DeFi protocols and cross-chain asset transfers continues to grow, users must remain vigilant in managing their crypto holdings and ensuring they do not inadvertently lose access to their funds.
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
Arkham’s findings serve as a reminder of the importance of proper record-keeping, transaction monitoring, and wallet management practices within the crypto community. The firm has urged all individuals and entities involved to revisit their transaction histories and bridge activities to ensure that all assets are accounted for and accessible.
It is worth noting that while DeFi bridges have been targeted by malicious actors in the past, with the infamous Ronin bridge hack resulting in the loss of $540 million, Arkham’s research does not indicate whether the forgotten funds are stuck due to security breaches or user negligence.
