Digital

Mixin Network Offers Hacker 10% Bug Bounty After $200 Million Exploit

Picture Source: BeInCrypto

Mixin Network, a blockchain protocol, recently fell victim to a significant exploit, resulting in the loss of $200 million. In an unusual turn of events, the Mixin Network team has offered the hacker a 10% bug bounty as an incentive to return a portion of the stolen funds. This move reflects a growing trend in the cryptocurrency space, where some hackers are willing to negotiate with project teams and accept a white hat reward. Here, we delve into the details of this incident and the ongoing attempts to recover the stolen assets.

Smaller Losses Than Expected

Following the exploit, Mixin Network had maintained silence on its official Twitter account until recently. On September 25, the team informed the public that they had completed most of the asset tally work and that the actual losses were smaller than initially estimated. While specific details regarding the amount lost were not disclosed, the team emphasized the need for users to refrain from making transactions on Mixin Network temporarily to prevent further losses. They also stated that “specific reimbursement rules” would be announced in due course.

Blockchain Communication with the Hacker

In a unique approach, Mixin Network has been attempting to contact the hacker through blockchain messages. The project has proposed that the hacker retain $20 million worth of assets as a bug bounty and return the remaining amount. This strategy seeks to incentivize the hacker to cooperate with the project rather than abscond with all the stolen funds.

Users’ Pleas for Asset Recovery

Several supposed users of Mixin Network have also sent heartfelt messages to the hacker, imploring them to consider returning the stolen assets. One Ethereum (ETH) address owner claimed to have lost 83.8 ETH, which represented their savings for the past decade. They appealed to the hacker, citing their financial hardship and family responsibilities.

Additionally, an Ethereum Naming Service (ENS) address, possibly representing the Federal Bureau of Investigation (FBI), urged the hacker to negotiate the return of the funds before an investigation into their identity began. While the authenticity of this message remains unverified, it reflects the broader trend of project teams and law enforcement agencies engaging with hackers to recover stolen cryptocurrencies.

A Growing Trend of Negotiation

The Mixin Network incident aligns with a growing trend in the cryptocurrency space, where hackers are willing to negotiate with project teams and return stolen funds in exchange for a reward. In the past, notable cases like Curve Finance and Euler Finance have witnessed successful negotiations with hackers, resulting in the return of substantial sums of stolen cryptocurrencies.

Read More: Gemini to Invest $24 Million in India, Aims for Expansion in Growing Crypto Market

Conclusion

The Mixin Network’s offer of a 10% bug bounty to the hacker represents a unique approach to recovering stolen assets in the cryptocurrency world. While the outcome of this negotiation remains uncertain, it underscores the importance of communication and cooperation in resolving security breaches in the blockchain space. As the cryptocurrency ecosystem evolves, it is likely that more such negotiations will occur, potentially leading to the recovery of stolen funds and increased security awareness within the industry.

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