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More_Ad_6196 OP t1_j5ks37k wrote

Reply to comment by Owlstorm in eli5 - Wrapped tokens - crypto by More_Ad_6196

So to put it in ELI5 terms, someone can take a Bitcoin, wrap it, sell the WBTC on Ethereums chain and reverse the transaction to get back their BTC while profiting off of the WBTC sale?

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Owlstorm t1_j5ksie0 wrote

Yes

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More_Ad_6196 OP t1_j5ksnfj wrote

Woah

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lemoinem t1_j5lr8bz wrote

Not specific to wrapped coins though. Any transaction that has part of it on the blockchain and part off the blockchain is vulnerable, by design.

Prep (send) the ON part, transact (receive) the OFF part, Revert (take back) the ON part.

You now have both the money associated to both the ON and OFF part.

That's essentially doing a transaction with a credit card and doing a charge back once you recieved the goods. Nothing new here...

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