The Sentiment lending protocol has managed to recover the funds stolen in the recent hack by offering the hacker a reward of USD 95,000.
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In an on-chain transaction on the Arbitrum blockchain, Sentiment sent a message to the hacker offering $95,000 if he returned the funds by April 6, urging him to “do the right thing.” If the hacker didn’t return the funds, the protocol also offered the money to anyone who could help find and prosecute the culprit.
MetaMask developer Taylor Monahan tracked the progress and noted that the hacker had returned 414 Ether worth about USD 771,000, in an initial transaction. Ultimately, the hacker returned another 51.75 ETH to Sentiment’s recovery address. After the transaction, the loan protocol confirmed that they had received the funds.
The hack took place on April 4. Some on-chain detectives suggested the attack might have been a reentrancy attack, while others said the attacker was based on a bug. Initial estimates of the lost funds were around $500,000, but after a while, community members confirmed that the losses were closer to $1 million.
Meanwhile, one community member concluded that the entire fiasco is a result of companies not taking bug bounties seriously, and praised the hacker’s efforts for “taking it hard.” On the other hand, another Twitter user described the incident as “a bug bounty with a criminal step” and urged companies to offer bigger and more transparent bug bounties.
The incident bears some similarities to the recent Euler Finance hack. On April 4, the Ethereum protocol convinced a hacker to return around 90% of the stolen funds after offering a bounty. The hacker returned around $176.4 million in digital assets, keeping almost $20 million for himself.