In a joint effort to reclaim funds lost in a recent hacking incident, decentralized finance (DeFi) platforms Curve, Metronome, and Alchemix have announced a new plan. According to on-chain data, these protocols are offering a 10% reward to the attacker as an incentive to return 90% of the stolen funds from the serious hack that occurred on July 30th. The attack resulted in a staggering $70 million in cryptocurrency losses across various pools, implying a potential reward of nearly $7 million for the hacker.
What sets this recovery plan apart is the promise to grant the reward without any legal actions or repercussions against the attacker. The projects have expressed their desire to handle the matter in a civilized manner, as revealed in an on-chain message.
“You will not face any risks when we grant the reward. There will be no legal consequences,” stated the protocols in a joint statement.
Furthermore, the projects emphasized that if the attacker does not return the funds before 15:00 on August 6th (Vietnam time), they will expand the reward to the community for information leading to the identification of the hacker. At that point, the hacker will face legal consequences from the authorities.
Additionally, the three projects have provided direct contact emails and called on all responsible parties to respond promptly. Curve, Metronome, and Alchemix have made it clear that any individual who contacts them for negotiations must verify ownership of their email address.
On July 30th, Curve Finance fell victim to a repeated attack known as “reentrancy,” resulting in the loss of over $47 million in cryptocurrencies. The attack specifically targeted the alETH, msETH, and pETH pools, as they were created using the Vyper programming language. Prior to the hack, Michael Egorov, the founder of Curve Finance, had pledged over $305 million worth of CRV as collateral for a $63.2 million loan. The liquidation of this collateral could lead to a significant CRV price drop, causing severe repercussions for the entire DeFi ecosystem.
To mitigate risks, Egorov has sold a total of 72 million CRV over-the-counter (OTC), amounting to approximately $28.8 million. Currently, the CRV price stands at $0.57, representing a 1% decline in the last 24 hours, according to TradingView data.
The DeFi community is closely monitoring these developments as the projects seek to recover the stolen funds and ensure the stability and security of the ecosystem. As the deadline approaches, all eyes are on the hacker’s decision and whether they will take the offered reward or risk facing potential legal action. This incident serves as a stark reminder of the importance of robust security measures within the DeFi space and highlights the ongoing challenges faced by the industry.
Source: https://azcoinnews.com/curve-finance-proposes-7-million-reward-to-hacker-for-returning-stolen-funds-10-of-total-losses.html
