In a surprising twist, hackers have returned 5,495 ETH (equivalent to $10 million) stolen from Curve Finance, leading to a sigh of relief among crypto investors. The announcement of this positive development was officially confirmed by JPEG’d, a decentralized loan company specializing in NFT-based collateral borrowing.
Following the breach at Curve Finance, a joint effort involving Metronome, Alchemix, and Curve was launched to recover the stolen funds. This united front offered the hacker a 10% reward for cooperation, ensuring no legal consequences in exchange for the return of the remaining 90% of the funds.
Remarkably, the hacker surrendered within a day of the reward proposal, demonstrating their involvement in the White-hat bounty program. In an unusual move, the hackers chose to forgo the $1.1 million reward they would have received for breaching the JPEG-encrypted protocol and instead returned the associated cash.
JPEG’d, creators of the NFT-Fi system at the heart of the breach, took an exceptional approach. They announced the cessation of any investigations or legal actions against the hacker, embracing a white-hat rescue approach.
The ordeal began with hackers exploiting Curve Finance on July 31, managing to steal approximately $47 million worth of bitcoins. In addition, the JPEG’d protocol suffered a loss of $11.6 million in cryptocurrency.
The quick resolution underscores the value of collaboration between crypto platforms and ethical hackers. This united stance against malicious actors highlights the decentralized finance community’s dedication to protecting users’ assets and fostering trust within the ecosystem.
Furthermore, the successful recovery acts as a deterrent to potential cybercriminals, sending a message that the crypto community is ready to take proactive measures to safeguard its interests.
However, this incident also underscores the ongoing need to enhance security and resilience in the rapidly evolving realm of digital finance. As the crypto landscape continues to attract global investors, prioritizing robust security measures and collaborative endeavors is essential to ensure the security of this emerging market.