Gamma Strategies, an Ethereum-based liquidity management protocol, has initiated contact with the individual responsible for the theft of $3.4 million in digital assets, proposing negotiations for a bounty in an effort to recover the funds lost during the exploit.
Gamma engages in negotiation with hacker following a 3.4 million Dollars exploit
On January 4, blockchain security firm PeckShield identified an exploit within Gamma’s vaults. Initial estimations indicated losses of approximately 211.9 Ether (ETH), equivalent to around $469,000. However, PeckShield later confirmed that the losses escalated to $3.4 million, with $2.2 million already transferred to the crypto mixer Tornado Cash by the exploiter. In response, Gamma promptly halted vault deposits, permitting only withdrawals. Additionally, the protocol reached out to the exploiter’s wallet address, expressing the intention to enter into negotiations for a bounty aimed at the return of the crypto assets.
After a 3.4 million Dollars exploit, Gamma makes efforts to negotiate with the hacker
Gamma, the decentralized finance protocol, announced the identification of the root cause of the attack and reassured the community that closing deposits for its public-facing vaults had effectively neutralized any further impact, as a deposit is a requisite for the attack vector. The protocol outlined its future course of action, including undergoing a third-party code review to ensure the mitigation of the attack before reopening deposits. The company emphasized its commitment to maximizing recovery for all affected users.
Acknowledging the impact on users, Gamma issued an apology and pledged to release a more comprehensive post-mortem analysis along with a proposed remediation plan in the coming days.
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