Unbacked Synthetic Bitcoin Floods Market After Symbiosis Bridge Hack

The Symbiosis BTC Bridge was exploited by hackers who created an enormous amount of unbacked synthetic Bitcoin, valued at around $46.1 billion. The attackers managed to sell a small portion of this fake supply for approximately $336,000 in real WBTC. However, the majority remains unsold.

Symbiosis confirmed the attack and halted all BTC routes through their bridge while leaving other routes operational. They have also recovered around 15 BTC from the attacker's address and are now storing it on a team-controlled multisig wallet.

In an effort to recover more funds, Symbiosis has offered a 20% bounty to the attacker, which will be paid if they return any remaining stolen assets within the next two days. If not, the same offer will be extended to anyone who provides information leading to recovery.

This incident is particularly concerning as it marks the third time in recent weeks that a similar unbacking trick has been used against various bitcoin wrapper projects. The Liquid Network and Nomic have also fallen victim to this type of attack, highlighting a potential vulnerability in these systems.