JPEG’d, a platform that combines Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi), has successfully reclaimed a large sum of stolen cryptocurrency. A hacker had discovered and exploited a flaw in Curve Finance, a prominent DeFi project. They took almost $70 million. However, some of these funds have now returned.
JPEG returned approximately $10 million in Ethereum (ETH), which is equivalent to approximately 5,495 ETH. Negotiations and the prospect of a reward enabled this recuperation. In exchange for returning the stolen assets, the hacker earned a bounty of 610.6 ETH, which is almost $1.1 million.
JPEG’d is a decentralized lending platform that allows users to borrow money against their NFT holdings. Unfortunately, the project had previously suffered a million-dollar loss owing to another hacking attack. The JPEG’d crew views the return of some of the stolen funds to be a positive outcome this time. They compare it to a white hat rescue. This effectively indicates that any further legal action against the hacker will be discontinued.
The incident occurred on July 30, inflicting a huge blow to the blockchain ecosystem. The hacker targeted Curve Finance’s vulnerabilities, notably a flaw in the scripting language used for the platform’s smart contracts.
NEWS: 🚨 The exploiter of #CurveFinance returned some stolen crypto after talking to a victim
— Walletor (@walletorapp) August 4, 2023
Multiple projects were impacted by this attack, including the decentralized exchange Ellipsis, lending site Alchemix, JPEG’d, and the Metronome synthetic protocol. Millions of dollars in assets were taken from these projects’ liquidity pools. Additionally, Curve Finance lost around $22 million in Curve DAO (CRV) tokens.
Finally, the restoration of $10 million in ETH represents a big success for JPEG’d and the greater DeFi community. Such occurrences highlight the necessity for increased security measures and speedy protocol modification to protect user cash and the integrity of DeFi systems. It emphasizes the significance of vigilance and teamwork in the face of cyber dangers in the cryptocurrency field.