Alchemix and its partners have successfully recovered stolen assets from a recent cryptocurrency theft, in an unusual turn of events. The hacker stole money from Curve Finance, a platform that manages many types of cryptocurrencies. This event occurred on July 30th, when the attackers stole almost $61 million in digital assets. Furthermore, Alchemix’s alETH-ETH pool contributed $13.6 million.
This hack also targeted other platforms, including JPEGd and Metronome, in addition to Alchemix. These platforms lost millions owing to system vulnerabilities. This is exactly what the hacker took advantage of by employing a sophisticated technique known as “reentrancy attacks.”
However, the narrative took an unexpected turn when the hacker accepted a bug bounty offer of over $7 million. This marked the start of the process of recovering the stolen funds. Alchemix, Curve, and Metronome collaborated on August 3rd to encourage the hacker to return the funds by giving a 10% incentive as part of a bounty effort. The three urged the hacker to return the remaining 90% of the assets, appealing to their feeling of responsibility.
Surprisingly, the initial hacker began repaying the stolen assets less than a day after this offer was made. The Alchemix Finance team received 4,820.55 Alchemix ETH (alETH) as the first step.
During this procedure, the hacker’s communication revealed an unexpected intent. They said that they were refunding because they didn’t want to hurt the initiatives involved, not because they were frightened of getting found.
NEWS: 🚨 💰#Alchemix Reports That All Stolen Funds From Curve Have Been Returned
— Walletor (@walletorapp) August 7, 2023
JPEG has also witnessed the restoration of 5,495 Etherum, as the hacker accepted responsibility for their acts. Returning stolen assets not only protected the projects from further losses but also highlighted a positive element of the blockchain community.
This instance exemplifies the value of cooperation and responsible hacking in the bitcoin world. Alchemix and its collaborators have transformed a potentially tragic situation into a stunning tale of redemption and trust.