• Sentiment, a lending protocol, was able to recover the stolen funds by offering a reward of $95,000 to the hacker.
• On-chain investigators revealed that the total amount of money stolen was close to $1,000,000.
• The Ethereum protocol successfully coaxed the hacker into returning almost 90% of the stolen funds with a bounty of over $20 million.
Sentiment Offers Reward for Stolen Funds
The lending protocol Sentiment offered a reward of $95,000 for locating and prosecuting the perpetrator in an on-chain transaction on their Arbitrum blockchain. The protocol urged the hacker to “do the right thing” by returning their stolen assets before April 6th.
On-Chain Investigators Estimate Amount Stolen
After some time had passed, it was revealed that 51.75 ETH (around $771,000) were recovered from Sentiment. On-chain investigators came to different conclusions about the nature of the assault and estimated that around $500,000 had been stolen initially – although this figure was later revised closer to $1,000,000 when more information became available.
Ethereum Protocol Returns 90% Of Funds
The Ethereum protocol successfully coaxed a hacker into returning almost 90% of their stolen funds in exchange for a bounty worth over $20 million – equaling 414 Ether (now worth around $771,000). This is similar to what occurred during Euler Finance’s recent hack incident where all recoverable funds were returned by offering a reward.
Parallels Between Euler Finance & Sentiment Hack
Parallels may be drawn between this latest incident and Euler Finance’s recent hack as both protocols offered rewards for restoring digital assets after being attacked by hackers.. In both cases it appears that providing incentives worked effectively in recovering lost funds from attackers.
It appears that offering rewards can be an effective way for crypto protocols to recover lost or stolen funds from malicious actors. This reinforces how important security is within cryptocurrencies and DeFi projects – especially as attacks become increasingly sophisticated .