Bounty

Gamma

Strong

Tornado

Gamma Strategies, an Ethereum-based liquidity management protocol, has encountered a security breach. This incident, involving an unauthorized extraction of $3.4 million in digital assets, has prompted Gamma to take unusual steps in its aftermath management. PeckShield, a blockchain security firm, played a crucial role in identifying and quantifying the extent of this <a href="https://coingape.com/levana-suffers-major-hack-assures-user-positions-remain-safe/" rel="noopener noreferrer nofollow">exploit</a>.
<h2 id="gamma-s-proactive-response-to-security-breach">Gamma’s Proactive Response to Security Breach</h2>
Initially, the loss was estimated at around 211.9 Ether (ETH), valued at approximately $469,000. However, subsequent assessments by PeckShield revealed that the total damage extended to $3.4 million. In an unexpected turn of events, a considerable portion of the stolen funds, amounting to $2.2 million, was tracked to Tornado Cash, a cryptocurrency mixer.
<h2 id="bounty-negotiation-efforts">Bounty Negotiation Efforts</h2>
In response to this crisis, Gamma Strategies has immediately <a href="https://coingape.com/ledger-releases-new-connect-kit-version-to-mitigate-hack-impact/" rel="noopener noreferrer nofollow">suspended </a>all deposit activities in its vaults while maintaining the withdrawal option for its users. This decisive action aimed to prevent further exploitation of the system’s vulnerabilities. Furthermore, Gamma Strategies has initiated a direct communication channel with the hacker, offering a bounty in exchange for the return of the stolen assets.
The Gamma team has identified the root cause of the <a href="https://coingape.com/kyberswap-faces-46-million-crypto-hack-triggering-concerns-in-defi-space/" rel="noopener noreferrer nofollow">attack</a>. They have assured their community that by disabling deposits to the public-facing vaults, they have effectively mitigated the risk of additional losses. This proactive approach highlights the importance of swift and strategic actions in the face of digital security threats.
<h2 id="future-steps-and-assurance">Future Steps and Assurance</h2>
Gamma Strategies is now focusing on comprehensive remedial measures. A key aspect of their recovery plan involves obtaining a third-party code review. This is to ensure that the vulnerabilities <a href="https://coingape.com/decentralized-exchange-okx-suffers-major-hack-exchange-initiates-action/" rel="noopener noreferrer nofollow">exploited </a>in the attack are thoroughly addressed before any resumption of deposit services. In addition, the protocol is committed to prioritizing the recovery of affected users, ensuring minimal long-term impact from this incident.
Additionally, Gamma Strategies has extended its apologies to those impacted by the breach. They have pledged to release a detailed analysis of the incident along with a well-formulated remediation plan. This commitment to transparency and accountability is a crucial step in restoring trust within their user base.
Read Also: <a href="https://coingape.com/bitcoin-long-term-holders-stand-strong-despite-recent-crypto-market-selloff/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Bitcoin Long-Term Holders Stand Strong Despite Recent Crypto Market Selloff</a>
The post <a href="https://coingape.com/crypto-exploit-gamma-strategies-halts-deposits-after-3-4m-hack/" rel="noopener noreferrer nofollow">Crypto Exploit: Gamma Strategies Halts Deposits After $3.4M Hack</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Crypto Exploit: Gamma Strategies Halts Deposits After $3.4M Hack

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