PeckShield, a blockchain security startup, verified the theft of $3.4 million from Gamma Strategies.
The Ethereum-based liquidity management protocol Gamma Strategies has reached out to the hacker responsible for the theft of $3.4 million worth of digital assets, requesting that they negotiate a reward in order to recover the funds that were lost in the exploit.
The blockchain security company PeckShield found a vulnerability in Gamma’s vaults on January 4th. Approximately 211.9 ether, or almost $470,000, was lost, according to early calculations. The exploiter had already sent $2.2 million to the cryptocurrency mixer Tornado Cash, and PeckShield subsequently verified that the losses had reached $3.4 million.
Gamma disabled vault deposits and enabled withdrawals only after the incident. In an effort to initiate discussions for a reward for the return of the cryptocurrency assets, the protocol has also communicated with the exploiter’s wallet address.
Additionally, the decentralized financial protocol revealed that it had discovered the attack’s origin. Turning off deposits to its public-facing vaults already “nullifies the attack any further,” it told the community, since that’s what the attack vector takes.
The protocol further detailed the procedures that will be followed going forward. Before resuming deposits, Gamma will reportedly have a third-party code evaluate the system to make sure the attack has been neutralized. The business went on to say that it will do its best to help any impacted customers get back on their feet.
A more comprehensive post-mortem report and a suggested repair strategy will be released in the next few days, and the business has apologized to the individuals impacted.
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