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Sturdy Finance, has taken an unconventional approach to reclaiming stolen funds. Following an exploit that captured around $800,000 in Ether, the project offered a $100,000 bounty to the attacker.
Sam Forman, founder of Sturdy Finance, confirmed that his team had offered the generous $100,000 bounty. The message asks that the attacker return the stolen funds to an address owned by Sturdy Finance, emphasising that the team will refrain from pursuing legal action if the funds are returned promptly.
Addressing the exploit
The security incident occurred when an attacker exploited a reentrancy vulnerability in one of Sturdy Finance's liquidity pools. Through this vulnerability, the hacker manipulated a price oracle, ultimately stealing a substantial amount of funds from the platform.
As soon as Sturdy Finance was aware of the breach it suspended all of its markets as a precautionary measure. The team assured users that no other funds were compromised and pledged to conduct a wide-ranging investigation into the platform's security.
We've sent the following message to the Sturdy hacker on-chain:— Sam Forman (@pgpsam) June 12, 2023
"To the exploiter: as we have seen with recent hacks, exploits are not as easy to escape from as they used to be. That said, we are willing to offer you $100k as a bounty, and will not pursue you further if you send…
A risky approach?
Sturdy Finance's decision to offer a bounty to the attacker raises eyebrows in the crypto community. While unconventional, this approach demonstrates the project's commitment to recovering the stolen funds and mitigating the potential fallout.
By choosing not to pursue criminal charges and instead incentivising the return of the funds, Sturdy Finance seeks to resolve the situation amicably while sending a strong message about its dedication to the principles of decentralisation and forgiveness.
The way forward
As the crypto world awaits the outcome of this unexpected offer, the incident serves as a reminder of the ongoing challenges faced by decentralised platforms. Sturdy Finance's swift response and commitment to securing its users' funds demonstrate its determination to uphold the highest standards of safety and integrity.
The community will be closely monitoring the outcome, which may set a precedent for how future security breaches are handled within the DeFi ecosystem.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.