The Exploit: How It Happened
On June 12, 2023, Sturdy Finance, a decentralized finance (DeFi) platform, found itself in the eye of the storm when it lost nearly $800,000 due to an attack. The culprit? A faulty price oracle that allowed for a reentrancy attack—it’s like leaving your car running while going inside for a snack. Security firms quickly assessed the situation, and Sturdy’s team shut down all markets, ensuring other funds were safe. Crisis averted? Not quite yet.
Hacker Negotiations: A $100K Offer
In an unexpected twist, Sturdy Finance co-founder Sam Forman took a bold step forward. Just a day after the attack, he tweeted an open invitation to the hacker: return the remaining funds to a specified wallet, and the platform would pay a $100,000 bounty. In a world where crypto often feels like the Wild West, this felt like a peace offering rather than a threat—a rare and somewhat cheeky move.
The Message to the Hacker
Forman didn’t stop with just a bounty offer. He sent an on-chain message to the hacker, advising them to reconsider their stance. In his words, “Recent hacks show that evading consequences is harder than ever.” This was not merely a plea—it was a strategy grounded in the reality of extensive blockchain tracking. It’s like trying to rob a bank in an old movie; in today’s age, the cameras never stop rolling.
Learning from Other Hacks
Sturdy isn’t the only project to dangle a carrot in front of hackers. Previous incidents have shown that negotiations can yield fruitful outcomes. For instance, Euler Finance managed to recover 90% of its stolen funds earlier this year through similar negotiations. Lending protocol Sentiment also scored big with their offer, regaining $870,000 post-exploit. Lessons learned: sometimes hitting the ground running means rolling out the dough.
Not All Bounty Programs Are Created Equal
While some snoopy hackers take the bait, others are less accommodating. Take the Jimbos Protocol, which had no such luck when it offered an $800,000 bounty post-exploit to no avail. Instead, they turned towards the public, pleading for those with knowledge to help. Spoiler alert: the hacker was less than forthcoming. In a world where some play dirty, others are left playing catch-up.
Conclusion: The Controversial Bounty Debate
So, should crypto projects negotiate with hackers? Opinions vary. While some assert it’s worth the risk to recover lost assets, others argue it sends the wrong message. It’s like trying to negotiate with a raccoon rummaging through your trash; sometimes you just have to let them have the leftovers and hope they leave you alone. As for Sturdy Finance, they’ll be keeping a close watch on their chosen path, blending caution with a sprinkle of audacity.
