Curve Finance Offers 10% Bug Bounty if Hackers Return Stolen Funds

To prevent further liquidity loss, Curve Finance and the affected projects have proposed an agreement allowing the hackers to keep 10% of the stolen funds as a reward.

Curve Finance's Bug Bounty Offer

On July 31, the crypto market was shaken by the news of an exploit in the liquidity pools on Curve Finance, resulting in an estimated loss of $52 million.

In the early hours of August 04, Curve Finance announced on Twitter that it would award a 10% bug bounty to the hackers if they agreed to return the stolen funds.

"Curve Finance, along with Metronome and Alchemix, have offered a bounty to the hacker(s) to return the stolen assets by 08:00 UTC on August 06. If no response is received by this deadline, the bounty will be given to anyone who can trace the identity of the attacker(s)."

Curve also issued a warning to the hackers: "We will pursue you to the ends of the earth within the bounds of the law."

This approach by Curve Finance is reminiscent of previous exploit resolutions, such as those involving Euler Finance in March 2023 and Mango Markets in October. Both Euler and Mango successfully recovered the stolen funds, and the perpetrators were exposed.

Impact and Response

The recent wave of exploits has left a significant impact on DeFi users and the ecosystem's operational efficiency. According to statistics, the crypto industry witnessed over $300 million in stolen assets due to security breaches in July 2023 alone, marking the most severe month of the year in terms of financial losses.

With the increasing pressure from hacks, scams, and attacks, protecting assets and managing risks remain critical challenges for DeFi protocols.

Conclusion

The ongoing efforts by Curve Finance to recover the stolen funds and offer a bug bounty demonstrate a proactive approach to mitigating the impact of such security incidents. However, the recent spate of attacks highlights the need for enhanced security measures and vigilant risk management to safeguard the future of the DeFi ecosystem.