Yes, Alchemix, a renowned lending platform, has confirmed the recovery of all stolen funds from the Curve finance hacker. The hacking incident occurred on July 30 and led to a loss of over $61 million in cryptocurrencies, which included $13.6 million from Alchemix’s alETH-ETH pool. Other victims of this attack were JPEGd’s pETH-ETH pool and Metronome’s sETH-ETH pool, which experienced losses of $11.4 million and $1.6 million, respectively.
The Attack and Its Methodology
The hacker exploited stable pools on Curve Finance, using susceptible versions of the Vyper programming language through reentrancy attacks. This strategic and well-planned move resulted in the massive siphoning of funds, stirring significant concern in the crypto community.
The Recovery of Stolen Funds
The process of recovering the stolen funds, Curve pools, Alchemix reports, began when the hacker accepted a bug bounty offer. On August 3, Curve, Metronome, and Alchemix collectively initiated a scheme to retrieve the stolen funds. They proposed a 10% bounty of the seized funds as a reward, urging the perpetrator to return the remaining 90%. This would bring the bounty close to a staggering $7 million.
Within 24 hours of the offer, the original attacker started returning the stolen funds. The first return was 4,820.55 Alchemix ETH (alETH) to the Alchemix Finance team. The rest of the funds were returned on August 5.
The Attacker’s Message and Further Developments
The attacker posted an on-chain message, seemingly directed at the Alchemix and Curve teams, stating that they were returning the funds not out of fear of being found, but to avoid “ruining” the involved projects. Nonfungible token protocol JPEG’d also confirmed that they had been refunded 5,495 Ether by the hacker. As part of the bounty offer, the protocol will not take legal action against the perpetrators. The JPEG’d team considered this occurrence as a “white-hat rescue”.
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