The hacker drained several pools on Curve Finance, stealing roughly $70 million, but has gradually started returning funds to various projects.
Nonfungible token (NFT) and decentralized finance (DeFi) protocol JPEG’d has confirmed that 5,495 Ether ETH $1,831, worth roughly $10 million at current prices, has been returned by the Curve Finance hacker.
In exchange for returning the funds that were stolen on July 30, the hacker received a 610.6 ETH ($1.1 million) bounty.
JPEG’d is a DeFi lending protocol that enables users to borrow funds against their collateralized NFTs. The protocol lost $11.6 million of crypto in the Curve hack.
In an Aug. 4, X (formerly Twitter) thread, the team stated that the funds had been returned to the JPEG’d decentralized autonomous organization multisig wallet address.
“Any further investigations or legal matters against the entity will end. We view this occurrence as a white-hat rescue,” the JPEG’d team stated.
The DeFi ecosystem received a significant hit in late July after several liquidity pools on Curve Finance were drained.
The hacker managed to exploit a security vulnerability in the Vyper smart contract programming language used in the pools, with total losses estimated to be around $70 million worth of crypto.
The exploit impacted projects such as decentralized exchange Ellipsis, lending platform Alchemix, JPEG’d, and synthetic protocol Metronome, which all saw millions of dollars worth of assets stolen from liquidity pools. Curve Finance also lost around $22 million of Curve DAO (CRV) tokens.
On Aug. 3, Curve, Metronome and Alchemix jointly announced an initiative to retrieve the stolen funds, offering the hacker a 10% bounty and no legal action if they returned the other 90% of the funds.
In less than 24 hours, the hacker apparently agreed to the deal and has gradually started returning the stolen funds to the various projects.
Apart from JPEG’d, the hackers have returned 4,820.55 Alchemix ETH (alETH) ($8.8 million) to the Alchemix Finance team and 1 ETH ($1,829) to the Curve Finance team.