Gamma Strategies Negotiates Bounty with Attacker to Recover $3.4M in Stolen Assets
Summary:
Gamma Strategies, an Ethereum-based protocol, is negotiating a bounty with the thief who stole $3.4 million in assets from its vaults. In response to the exploitation, Gamma halted its vault deposits and started direct communications with the attacker's wallet address. Gamma identified the attack's root cause and assured users that the issue has been contained. Moving forward, Gamma plans a third-party code review and has prioritized recovery for all impacted users, promising a comprehensive incident report and recovery plan soon.
Gamma Strategies, a protocol managing liquidity on the Ethereum blockchain, has reached out to orchestrate a bounty negotiation with the attacker responsible for thieving $3.4 million worth of digital assets, with the aim to recover the funds lost in this breach. On the 4th January, PeckShield, a blockchain defense company, discovered an exploit in Gamma's vaults. The preliminary approximation revealed losses amounting to 211.9 Ether (ETH), valued at $469,000. However, a subsequent confirmation by PeckShield indicated that the losses totaled $3.4 million, with the attacker having already funneled $2.2 million into Tornado Cash, a cryptocurrency mixer.
Responding to this assault, Gamma suspended deposits into its vaults, permitting only withdrawals. The protocol has even communicated directly to the offender's wallet address, in a bid to kickstart talks for a bounty exchange to recoup the stolen digital assets. Decentralized finance (DeFi) protocol, Gamma, revealed identification of the attack's root cause. By halting deposits into their customer-facing vaults, they reassured their community that the attack could no longer continue, as a deposit is mandatory for the attack to propagate.
Outlining their next steps, Gamma stated they would engage a third-party service for a code review to ensure the infraction is properly contained before they consider resuming deposits. They have also emphasized their commitment to a full recovery for every impacted user.
Apologizing to those who've suffered losses, Gamma committed to sharing a more comprehensive breakdown of the incident and a proposed plan of resolution in the near future.
Published At
1/4/2024 3:49:52 PM
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