Over the last few months, crypto hacking has turned rampant, especially in the decentralized finance (DeFi) market. This month itself, more than $750 million have been already lost in crypto hacks as per data from Chainalysis. Crypto billionaire and FTX chief Sam Bankman-Fried have recently outlined a framework to deal with this problem of crypto hacks. Interestingly, the solution proposed by SBF involves rewarding the hackers. In his latest blog post, the FTX chief proposed a “5-5 standard” wherein the hackers get to keep 5% of the total funds stolen or $5 million whichever is smaller. Other provisions include that the hacker acts in “good faith” and intends to cooperate on returning most of the crypto assets. In crypto hacking, some of the hackers are also white-hat hackers who seek to expose the vulnerabilities in the protocol in return for a reward instead of making malicious gains. The SBF chief noted: “Hacks are extremely destructive to the digital asset ecosystem. The 5-5 approach would have curbed the impact of hacks more than 98%”.
Read more : FTX Chief Shares Solution to End Crypto Hacking.