$100 USDC on Ethereum Now Costs Almost $300 USDC on Harmony, But There’s Catch


An attracting swap possibility is not what you think

Following the $100 million hack of Harmony’s Horizon Bridge, the swap rates on the Ethereum mainnet and bridge have been rigged, offering some users to triple their USDC holdings with a simple exchange. But you shouldn’t and probably won’t be able to.

The main reason behind the imbalance could be tied to the massive outflows volume, which created too much pressure on USDC reserves that lost the $1 peg exclusively on the platform.

Unfortunately, the technical possibility of the exchange was prevented due to the Harmony bridging ban on the Synapse platform. Even if the exchange were possible, it is highly likely that the USDC traded on Harmony would have no value, as these funds most likely disappeared during the hack.

How Harmony lost its funds

The hacker or group of hackers used two different wallets to transfer the stolen funds. Ethereum, BNB, USDT, USDC and other cryptocurrencies were sent to the first wallet, ending with “ded00,” which is now worth almost $100 million.

The second wallet received significantly fewer coins and its balance currently remains at $1.8 million. The coins and tokens transferred were BUSD and BNB.

After transferring funds to the first wallet, the hacker made a swap between the “ded00” wallet and three other entities. At press time, there is no information about whether the hacker moved his funds on coin mixing solutions or not.

Harmony isn’t the first transition solution that’s come under attack this year alone. Previously, the Ronin sidechain of blockchain game Axie Infinity was hacked, with $600 million in user funds stolen.


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