Lending platform Alchemix has successfully recovered all the funds stolen by the Curve Finance hacker, according to an announcement made by the company. The attack, which occurred on July 30, resulted in a draining of over $61 million in cryptocurrencies.
During the attack, Alchemix’s alETH-ETH pool lost $13.6 million, while JPEG’d’s pETH-ETH pool saw outflows of $11.4 million, and Metronome’s sETH-ETH pool was drained of over $1.6 million. The hacker targeted stable pools on Curve Finance by exploiting vulnerable versions of the Vyper programming language through reentrancy attacks.
The return of funds began after the hacker accepted a bug bounty offer. On August 3, Curve, Metronome, and Alchemix jointly announced an initiative to recover the stolen funds, offering a 10% bounty as a reward and appealing to the hacker to return the remaining 90%.
Surprisingly, the hacker began returning funds less than 24 hours after the offer was made. Initially, they sent back 4,820.55 Alchemix ETH (alETH) to the Alchemix Finance team before completing the transaction on August 5.
In a message posted by the attacker, they claimed to be willing to return the funds because they did not want to “ruin” the projects involved. This act of returning the stolen funds has been viewed by the nonfungible token protocol JPEG’d as a white-hat rescue, and the protocol has decided not to take legal action against the hackers.
Alchemix, Curve Finance, and Metronome are relieved to have recovered the stolen funds, which amount to millions of dollars. The return of the funds has not only restored the financial stability of these platforms but has also boosted confidence among their users.
The incident highlights the importance of bug bounty programs and cooperation between different projects within the cryptocurrency industry. Despite the attack, the successful recovery of funds demonstrates the resilience and commitment of these platforms to protect their communities and assets.
As Alchemix, Curve Finance, and Metronome continue to strengthen their security measures, this incident serves as a reminder for all participants in the crypto space to remain vigilant and take necessary precautions to protect their investments.
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