In the aftermath of a $3.4 million hack in digital assets, Gamma Strategies liquidity management protocol, while attempting to retrieve the funds lost in the exploit, negotiates a bounty with the hacker.
PeckShield, a blockchain security firm, identified an exploit in Gamma’s repositories on January 4. Initial assessments indicated that the losses incurred a value of approximately $469,000. They amounted to 211.9 Ether.
Subsequently, PeckShield verified that the incurred losses amounted to $3.4 million, with the perpetrator having already transferred $2.2 million to the cryptocurrency mixer Tornado Cash.
As a reaction to the assault, Gamma suspended vault deposits and restricted access to withdrawals only. In addition to sending a message to the wallet address of the exploiter, the protocol is attempting to initiate bounty negotiations in exchange for the return of the cryptocurrency assets.
The decentralized financial protocol also declared that it had identified the attack’s fundamental cause. It reassured the community that impeding deposits for its publicly accessible vaults effectively “nullifies the attack any further” because a deposit is a prerequisite for the attack vector.
Additionally, the protocol detailed the subsequent procedures. Gamma claims the code will be subjected to a third-party evaluation before reopening deposits to ensure the attack has been mitigated. Furthermore, the organization emphasized maximizing recovery efforts for all impacted users.
The organization expressed regret to the individuals impacted and pledged to provide a remediation strategy and a more comprehensive post-mortem examination in the following days.
