Gamma Strategies Initiates Bounty Negotiation with Attacker
The protocol managing liquidity on the Ethereum blockchain, Gamma Strategies, has started negotiating a bounty with the attacker responsible for stealing $3.4 million worth of digital assets. The attack, initially estimated at $469,000, was discovered by blockchain defense company PeckShield. However, further analysis revealed the total loss to be $3.4 million, with $2.2 million already sent to Tornado Cash.
Gamma Strategies Shuts Down Deposits and Communicates with Attacker
In response to the attack, Gamma Strategies has halted vault deposits and is only allowing withdrawals. The protocol has also initiated communication with the attacker’s wallet address in an attempt to negotiate the return of the stolen crypto assets.
Root Cause of Attack Identified
Gamma Strategies has identified the root cause of the attack and assured the community that shutting down deposits for public-facing vaults has nullified the attack vector. The security breach was attributed to inconsistencies in accounting mechanisms for depositing and withdrawing funds.
Growing Number of Security Breaches in Cryptocurrency Sector
The Gamma Protocol exploit adds to the increasing number of security breaches in the cryptocurrency sector. In 2023 alone, losses amounted to nearly $1.8 billion, with notable incidents occurring in the latter half of the year. High-profile hacking incidents affected entities like Multichain, Euler Finance, Mixin Network, and Atomic Wallet. Lazarus, a North Korean hacking group, was implicated in multiple attacks that resulted in losses exceeding $300 million.
Hot Take: Gamma Strategies Takes Swift Action to Address Security Breach
Gamma Strategies has responded promptly to the security breach by implementing measures to address the incident and enhance security protocols. These measures include setting price change thresholds to safe levels, engaging a third-party service for code review, and resuming deposits only after ensuring robust security measures are in place. The company is committed to achieving a full recovery for affected users and will provide a detailed post-mortem analysis of the incident, along with a comprehensive resolution plan to prevent future security breaches.
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