Kronos Research Offers 10% Bounty to Recover Stolen Funds
Cryptocurrency trading firm Kronos Research is taking an unconventional approach to recover the $25 million stolen by a hacker. They have publicly offered the thief a 10% bounty, equivalent to around $2.5 million, in exchange for returning 90% of the stolen funds. This tactic of negotiating with hackers in public view has become increasingly common in the crypto industry.
The Hack and Stolen Funds
In mid-November, the hacker gained access to Kronos’ API keys, which allowed them access to the company’s treasury accounts. They made off with $25 million, mostly in stablecoins like USDT and USDC.
Public Negotiations as a Growing Trend
Public negotiations between hackers and victims have become more prevalent in recent years. After decentralized exchange KyberSwap suffered an exploit, the attacker showed a willingness to engage in conversation. KyberSwap offered a 10% bounty, the same percentage offered by Kronos.
Controversy and Implications
The practice of negotiating with hackers is controversial. Critics argue that it incentivizes cybercrime, while others believe it may lead to even larger payouts. However, for Kronos investors, recovering most of their funds outweighs these concerns. If the negotiation fails, Kronos will cover all losses internally. The outcome of this case could set a precedent for future crypto crime-fighting strategies.
Hot Take: Is Negotiating with Hackers a Viable Solution?
Negotiating with hackers has become an unconventional but increasingly popular method for victims to recover stolen funds in the crypto industry. While critics raise concerns about incentivizing cybercrime, victims are willing to explore compromises to recoup their losses. The success or failure of Kronos Research’s negotiation with the hacker will set an important precedent for future cases. As the industry continues to grapple with the challenges of securing digital assets, finding innovative solutions like public negotiations may become a necessary tool in combating crypto theft.
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