A decentralized lending platform recently fell victim to a devastating hack, losing a staggering $80 million to cybercriminals. In a bold move to recover the stolen funds, Qubit Finance has offered the hackers a multimillion-dollar bug bounty in exchange for returning the stolen Ethereum.
The attack, which exploited a vulnerability in the QBridge deposit function, allowed the hackers to convert the stolen Ethereum into Binance coins worth tens of millions of dollars. By exploiting a flaw in Qubit Finance’s code, the attackers were able to withdraw Binance tokens without depositing any Ethereum, leading to the substantial loss.
Desperate to recover the funds, Qubit Finance took to Twitter to address the hackers directly, urging them to negotiate a return of the stolen funds. In a public plea, the firm referred to the hackers as “dear exploiter” and offered to engage in discussions to find a resolution. The company even went as far as offering a “maximum” bug bounty and assured the hackers that they would not pursue legal action if the funds were returned.
As the negotiations continued, Qubit Finance increased the bug bounty from $1 million to $2 million in hopes of persuading the hackers to cooperate. However, it remains unclear whether the tactic was a strategic ploy to buy time or a genuine attempt to secure the return of the stolen funds.
Despite these efforts, the chances of recovering the stolen funds remain slim unless the hackers choose to cooperate. Qubit Finance is in the process of launching a new site to assist affected users in filing reports with local authorities, but without the hackers’ cooperation, the prospects of recovering the lost funds are uncertain.
A recent report from Chainalysis highlighted the prevalence of attacks on decentralized finance (DeFi) protocols, with losses exceeding $2 billion last year. The rise in DeFi attacks underscores the growing threat posed by cybercriminals to the decentralized financial ecosystem, emphasizing the need for robust security measures and proactive risk management strategies.