Curve, DeFi Platforms Send On-Chain Messages To Hackers

Curve, Metronome, and Alchemix unite, offer 10% reward to hacker for returning 90% of stolen funds, or face vigilante justice.
By Coingape Staff
August 4, 2023 Updated August 4, 2023
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Curve Finance (CRV) Exploit Saga Takes New Turn

The Curve Finance hack this week has the DeFi sector extremely alarmed and in tight fear of liquidation. And in a stunning change of events, Curve, Metronome, and Alchemix, three key stakeholders in the Decentralized Finance (DeFi) ecosystem, have united to strike a deal with the “CRV/ETH exploiter 2” to recover a large amount of the monies that were stolen.

Curve And DeFi Giants Send On-Chain Message To Hacker

According to LlamaRisk’s post-exploit analysis, multiple DeFi projects’ pools were compromised, including PEGD’s pETH/ETH: $11 million, Metronome’s msETH/ETH: $3.4 million, Alchemix’s alETH/ETH: $22.6 million, and Curve DAO: about $24.7 million

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Curve, Metronome, and Alchemix decided to take matters into their own hands by initiating direct communication with the hacker. In an on-chain message sent to the hacker’s Ethereum address, they assured immunity from any further pursuit by law enforcement if the stolen funds were returned. However, they made it unequivocally clear that non-compliance would result in publicizing the hack and a relentless legal pursuit of the criminal.

The trio offered the hacker a tantalizing deal, promising 10% of the pilfered assets in exchange for returning the remaining 90%. However, with an imminent deadline of August 6 at 0800 UTC, they have warned that failure to comply will lead to a relentless pursuit of the criminal.

The attack exploited a critical vulnerability in versions of the Vyper programming language, targeting four liquidity pools on the widely-used Curve Finance platform. Pools utilizing Vyper 0.2.15, 0.2.16, and 0.3.0 were affected, leading to a significant loss of funds.

The three emphasized the value of on-chain ownership verification for negotiations and offered a direct channel via curvenegotiation@protonmail.com to help with communication. The approaching deadline makes it urgent to find a mutually agreeable solution.

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Using USDT For CRV Tokens, Proposal By Aave Dao Member

Aave Decentralized Autonomous Organization (DAO) member has suggested a tactical move to buy CRV tokens using USDT from the Aave DAO treasury in a related development. The proposal attempts to strengthen the DeFi ecosystem and increase the liquidity of the Curve protocol by rewarding GHO liquidity through Curve voting power.

Aave DAO would also benefit from more voting power on the platform and a more advantageous position in the ongoing “Curve wars” as a result of the acquisition. As the deadline approaches, the DeFi community is anxiously watching the outcome of the negotiation.

Also Read: Strong Boost In Bitcoin Address Activity Hints At Short-Term BTC Price Jump

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