Gamma tries to negotiate with hacker after $3.4M exploit.
Gamma Strategies, an Ethereum-based liquidity management protocol, has sent a message asking to negotiate a bounty with an attacker who stole $3.4 million worth of digital assets in order to recover money lost in the exploit.
On January 4, blockchain security firm PeckShield discovered an exploit in Gamma Vaults. The first estimates show that the loss has fallen to around 211.9 Ether (ETH), which is approximately $469,000. However, PeckShield later confirmed that the loss had reached $3.4 million and that the exploiter had transferred $2.2 million to crypto mixer Tornado Cash.
#PeckShieldAlert @GammaStrategies Exploiter-named address transferred $1K ETH (value ~$2.2M) to #tornadocash pic.twitter.com/Ins4Fa5cmX
— PeckShieldAlert (@PeckShieldAlert) January 4, 2024
In response to the attack, Gamma closed its depository, allowing only withdrawals. The protocol sends a message to the exploiter's wallet address, hoping to initiate negotiations for a reward for returning crypto assets.
The decentralized finance protocol has already identified the root cause of the attack. For the community, closing public-facing vaults “destroys the attack” because a deposit is required for the attack vector.
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The protocol also explained the steps it would take going forward. According to Gamma, it will get a third-party code review to address the attack before reopening deposits. The company has also indicated that it will extend the recovery to all affected users.
The firm apologized to those affected and promised a more detailed post-mortem analysis and remediation plan in the coming days.
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