See More

Curve Finance and Other DeFi Entities Offer 10% Bounty for Recovery of Stolen Funds

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • DeFi platforms Curve Finance, Metronome, and Alchemix propose an on-chain reward of 10% to the hackers if they return the stolen funds.
  • The consortium provides an ultimatum, offering immunity from legal action for participation but expanded action for non-cooperation.
  • The hack on Curve Finance's stablecoin lending platform resulted in over $50 million loss, causing a significant decline in TVL of protocols.
  • promo

Curve Finance and other DeFi platforms are coordinating to retrieve stolen funds after a recent hack. Curve Finance, Metronome, and Alchemix have issued an open call to the hackers, proposing a possible bounty from the loot.

The platforms have offered a 10% incentive for the culprits to retain if they return the remaining 90%.

Curve Finance, Allies Issue Warning

The Curve Finance, Metronome, and Alchemix consortium laid a proposition in an encrypted message on Etherscan. The message said that they were offering a 10% incentive to the hackers upon the safe return of the remaining funds.

The group promises immunity from legal action if the hackers willingly participate in this process. However, they have also put out a stern warning.

The message states,

“If you choose not to participate in the voluntary return and complete the process by August 6, we will expand the bounty to the public and offer the full 10% to the person who can identify you in a way that leads to your conviction in the courts.”

“We will pursue you from all angles with the full extent of the law,” they added.

Unencrypted on-chain message from Curve Finance to Hacker. Source: Etherescan
Unencrypted on-chain message from Curve Finance to Hacker. Source: Etherescan

The consortium urges the hackers to reach out via [email protected], reminding them that the deadline looms near.

Consequences of the Hack

The recent attack on Curve Finance’s stablecoin lending platform had ripple effects on the DeFi ecosystem. There has been a sharp decline in the total value locked across several protocols.

A reentrancy attack led to an exploit on Curve Finance on July 30. It amounted to a staggering loss of over $50 million. The attack specifically targeted several stable pools operating on older Vyper smart contract programming language versions.

According to Vyper’s official documentation, this malfunctioning version was the recommended install.

Following the theft, a white hacker provided some relief. Reports confirmed that an anonymous crypto trader, c0ffeebabe.eth used an Ethereum-arbitrage trading bot to beat the rogue hackers.

The good actor recovered $5.4 million that the attackers planned to pilfer from Curve. The helpful hacker returned the money to the Curve team.

Take a look at our guide on managing risks when using DeFi protocols: Identifying & Exploring Risk on DeFi Lending Protocols

A Precedent of Crypto Bounty Offers

Dealing with cybercrime in the crypto world often requires several solutions. In the past, DEI Stablecoin experienced a multi-chain exploit on Arbitrum, Ethereum, and BNB Smart Chain (BSC). It led to a loss of approximately $6.5 million, but some funds were subsequently recovered.

This was made possible after issuer Deus Finance convinced one of the exploiters to return $1.07 million DAI to its multi-signature wallet. They treated all returns as a white hat rescue and offered a 20% bounty.

In a similar instance in April, the crypto trading platform Eureka Trading placed a $3 million bounty to help recover funds lost during a hack.

Meanwhile, the multi-chain token DeFi bridge Allbridge identified the hacker a day after an attack that cost them $570,000. The cross-chain solution provider later received 1,500 BNB from the attacker.

Following a significant exploit last year, the Mango Markets community voted almost unanimously to offer the perpetrator a sizeable ‘bounty.’ It marked one of the largest rewards after a series of negotiations with the Mango team.

Top crypto projects in the US | April 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

shraddha_sharma.jpg
Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest in understanding crypto from a personal finance standpoint.
READ FULL BIO
Sponsored
Sponsored