Gamma Strategies, an Ethereum-based liquidity management protocol, has reached out to the attacker responsible for a $3.4 million digital asset theft in an attempt to negotiate a bounty for the return of the funds lost during the exploit.
Blockchain security firm PeckShield initially detected an exploit within Gamma’s vaults on January 4, estimating losses of around 211.9 Ether (ETH), equivalent to approximately $469,000 at the time. However, subsequent investigations revealed that the losses had escalated to $3.4 million, with $2.2 million already transferred to the crypto mixer Tornado Cash by the exploiter.
In response to the attack, Gamma promptly ceased vault deposits, permitting only withdrawals. The protocol also sent a message to the attacker’s wallet address, expressing a willingness to engage in negotiations for a bounty in exchange for the return of the stolen crypto assets. Additionally, Gamma assured the community that the root cause of the attack had been identified, and shutting down deposits for public-facing vaults had neutralized any further threats as a deposit is a requirement for the attack vector.
Gamma outlined its plan moving forward, which includes undergoing a third-party code review to ensure that the attack is effectively mitigated before reopening deposits. The company emphasized its commitment to maximizing recovery for all affected users. The firm issued an apology to those impacted by the incident and promised to release a more detailed post-mortem analysis along with a proposed remediation plan in the coming days.
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