March 27, 2024
Gamma's $3.4M Asset Loss Triggers Negotiations
Latest Cryptocurrency News

Gamma Strategies Initiates Talks with Attacker after Crypto Theft

Gamma Strategies, a protocol for managing liquidity on Ethereum, has reached out to the perpetrator behind the theft of $3.4 million in digital assets, aiming to negotiate a resolution for the lost funds resulting from the exploit. Initially discovered by blockchain security firm PeckShield on January 4, an exploit within Gamma’s vaults was detected. Early assessments suggested losses of approximately 211.9 ether, valued at around $469,000. However, PeckShield later confirmed the extent of the losses, amounting to $3.4 million, with $2.2 million already transferred to the crypto mixer Tornado Cash by the attacker. 

In response to the breach, Gamma halted vault deposits, permitting only withdrawals. Additionally, the protocol initiated communication with the exploiter’s wallet address, seeking discussions to arrange a bounty for the return of the crypto assets. The decentralized finance protocol also disclosed that the root cause of the attack had been identified, reassuring the community that the attack’s potential had been neutralized by discontinuing deposits to its public-facing vaults, as deposits were integral to the attack vector.

Gamma outlined its forthcoming actions, including a third-party code review to prevent future attacks before reopening deposits. The company emphasized its commitment to maximizing recovery for all affected users.

Expressing regret to those impacted, the firm pledged a comprehensive post-mortem analysis and a proposed plan for remediation in the upcoming days.

Image by freepik

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