JPEG'd confirms Curve hacker's recovery of 5,495 ETH
August 5, 2023 8:00 AM
Approximately $70 million was stolen by the hacker from several pools on Curve Finance, but the funds are slowly being returned to their rightful owners.
JPEG'd, a nonfungible token finance (NFT-Fi) protocol, has announced that the Curve Finance hacker has returned 5,495 Ether (ETH), worth around $10 million at current pricing.
The hacker received 610.6 ETH ($1.1 million) in exchange for returning the monies stolen on July 30.
JPEG'd is a decentralized lending system that allows users to borrow funds against their collateralized non-financial assets (NFTs). The protocol lost $11.6 million in cryptocurrency as part of the massive breach on Curve Finance.
The team confirmed the return of the funds to the multisig wallet address provided by the JPEG decentralized autonomous organization in a thread on X (Twitter) on August 4.
"Any further inquiries or legal proceedings against the company will be terminated." "We see this as a white-hat rescue," the JPEG'd crew declared.
In late July, the decentralized finance (DeFi) ecosystem took a big hit when multiple liquidity pools on Curve Finance got drained.
The hacker was able to exploit a security flaw in the Vyper smart contract programming language, which these pools were programmed, and the total losses were believed to be over $70 million in cryptocurrency.
Curve Finance lost almost $22 million worth of Curve DAO (CRV) tokens in addition to the millions of dollars stolen from other projects' liquidity pools, including the decentralized exchange Ellipsis, the lending platform Alchemix, JPEG'd, and the synthetic protocol Metronome.
On August 3, Curve, Metronome, and Alchemix announced a cooperative endeavor to recover the stolen funds, giving the hacker a 10% bounty and no legal action in exchange for returning the remaining 90% of the assets.
In less than 24 hours, the hacker appears to have agreed to the bargain and has begun progressively restoring the stolen monies to the numerous projects.
In addition to JPEG'd, they have already returned 1 ETH ($1,829) to the Curve Finance team and 4,820.55 Alchemix ETH (alETH), equivalent to about $8.8 million to the Alchemix Finance team.