Mar 08, 2023

White Hat Hacker Rewarded $97K for Returning Stolen Funds to

On March 7, 2021, the hacker behind the exploit of the decentralized finance lending platform returned the stolen funds for a $97,000 bounty reward in Ether (ETH).

At 10:28 am UTC, the exploit was executed and soon confirmed the incident on Twitter, citing “an unusual amount of borrows” and adding it had paused all borrowing. Blockchain data revealed the exploiter used a price oracle glitch to borrow $1.59 million worth of assets from the protocol by depositing 1 GMX token, valued at around $71.

The hacker contacted to sort out the issue and an agreement was reached in which the hacker would repay all loans minus a 62.16 ETH “bounty,” worth around $97,000 at current prices. Eight hours later, confirmed on Twitter that the exploiter had completed the loan repayments.

This is not the first time a white hat hacker has returned stolen funds. Last year, cross-chain Nomad Bridge appealed to exploiters that participated in a smart contract exploit that extracted $190 million in funds from the bridge in less than three hours. Mere hours later, approximately $32.6 million worth of funds were already returned, suggesting some of the exploiters may have been white hat hackers attempting to extract funds for a later safe return.

In August of the same year, nonfungible token firm Metagame even offered a “Whitehat Prize” in the form of an NFT for anyone who proved they had returned at least 90% of the funds they stole from the protocol.

Since then, funds have continued to be returned to the recovery address, with the latest transaction recorded on Feb. 18 for $7,868 in Covalent Query Token (CQT).

The incident has highlighted the importance of NFT marketing and promotion for web3 projects. As the crypto space continues to evolve, NFTs are becoming increasingly popular as a way to promote and market projects. NFTs can be used to reward white hat hackers for returning stolen funds, as well as to incentivize users to participate in projects.

In addition, NFTs can be used to increase brand awareness and engagement by leveraging the power of social media platforms such as Twitter. Twitter NFT marketing is a powerful tool that can be used to reach a wider audience and engage with potential customers.

For those looking to get involved in NFT marketing, there are a number of NFT marketing agencies and web3 agencies available to help. These agencies can help projects to create, promote, and sell NFTs, as well as to manage their NFT campaigns.

The incident with demonstrates the importance of NFT marketing and promotion for web3 projects. By leveraging the power of NFTs, projects can increase their brand awareness, engage with potential customers, and reward white hat hackers for returning stolen funds.

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