A protocol focused on managing assets on the Ethereum network, Gamma, is in talks with the hacker who exploited its system, resulting in a $3.4 million loss of digital assets.
The attack, initially estimated at 211.9 Ether (worth approximately $469,000), was identified by the blockchain security firm PeckShield on Jan. 4. The hacker promptly transferred $2.2 million to Tornado Cash, a crypto mixer.
In response, Gamma suspended deposits to its vaults, allowing only withdrawals, and initiated negotiations with the attacker for a potential bounty in exchange for the return of the stolen assets.
Gamma addressed the hacker, stating, “We noticed that you found a bug, and we want to thank you for discovering it. We hope you did so as a whitehat or grayhat. We want to open up communications regarding bug bounty.”
Gamma claims to have identified the root cause of the attack, asserting that shutting down deposits for public-facing vaults nullifies further threats. To prevent future exploits, the protocol plans a third-party code review before reopening deposits, with a focus on recovering funds for affected users.
Gamma’s engagement in negotiations with the hacker, following a $3.4 million exploit, reflects a proactive approach to recovery, emphasizing a thorough assessment and security measures to prevent future vulnerabilities.
Also Read: Crypto Users Lost $2B to Hacks in 2023, De.Fi Reports
