Hacker Returns 90% of Stolen Funds To Lending Protocol Sentiment

• On-chain investigators came to different conclusions about the nature of the assault.
• Parallels may be drawn between this and the recent Euler Finance hack.

By providing a reward of $95,000 for the hacker, the lending protocol Sentiment was able to retrieve the stolen funds. Sentiment urged the hacker to “do the right thing” by offering $95,000 in exchange for the restoration of the stolen assets by April 6 in an on-chain transaction on the Arbitrum blockchain.

The protocol said that if the hacker failed to return the money, it would be given to anybody who assisted in locating and prosecuting the perpetrator.

Taylor Monahan, a developer with MetaMask, kept tabs on the situation and pointed out that the hacker had returned 414 Ether (now worth around $771,000) in a single transaction. A total of 51.75 ETH were recovered by Sentiment after some time had passed. The lending protocol verified their receipt of the funds after the completion of the transaction.

$20 Million Bounty

On April 4, the hack was carried out. On-chain investigators came to different conclusions about the nature of the assault, with some speculating that it was a re-entry attack and others saying the hacker exploited a flaw. The missing funds were first estimated to be roughly $500,000, but members of the community later revealed that the actual amount was closer to $1,000,000.

Parallels may be drawn between this and the recent Euler Finance hack. On April 4, after offering a reward, the Ethereum protocol successfully coaxed a hacker into returning almost 90% of the stolen funds. To the tune of $176.4 million, the hacker restored digital assets while taking over $20 million as a bounty.

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