The founder of the recently hacked decentralized finance protocol SIR.TRADING made an emotional advocacy to the attacker, asking them to return around 70% of stolen customer funds, if not, the protocol will not survive.
“Here is my proposal, keep $ 100,000 as just part for your critical bug search and return the rest,” wrote the pseudonym founder of Sir.trading “Xatarrer” in an onchain message from March 31 to the attacker after the hacking of $ 355,000 on March 30.
“We will even call him. No legal matches, no drama,” they added.
Xatarrer said that Sir.trading had been built on four years of late evening coding and $ 70,000 of friends and believers without additional venture capital funding.
“We have reached $ 400,000 TVL in an organic way without advertising. If you keep 100% of funds, there is no chance for us to survive. ”
Xatarrer even praised the pirate for the sophisticated hack, declaring that it was “almost beautiful if it was not for all the funds that people lost”.
Source: Sir
The pirate did not respond and has already transferred the stolen funds to Ethereum Privacy Solution Railgun, according to data from Ethereum Block Explorer Etherscan.
Xatarrer first declared on March 30 that the SIR.TRADING team intended to maintain the operational protocol despite the reverse. “We have already started to plan our next steps. These affected by hacking will not be forgotten,” he said on March 31.
Piracy results from the feature added to the Dencun d’Ethereum upgrade
The pirate has targeted a recall function used in the “vulnerable contract” of the protocol which operates the transitional storage function of Ethereum.
The pirate managed to replace the address of a real uniswap Pool used in this recall function with an address under the control of the pirate, allowing them to redirect the funds in the safe at their address by calling the recall function on several occasions until the total value of the protocol is drained.
The transitional storage function was added to Ethereum during the Dencun upgrade of March 2024 as a solution to provide users lower gas costs that gas is generally required for regular storage.
In relation: DEFI Hacks drops by 40% in 2024, CEFI reached an increase of $ 694 million – Hacken
Sir.trading’s documentation shows that it was presented as “a new DEFI protocol for a safer lever effect” to meet some of the challenges that often occur in lever -effect trade – such as the decrease in volatility and the risks of liquidation.
It sometimes happens that the crypto lost against exploits and scams fell to $ 28.8 million in March, said the security company Blockchain Certik in a position of March 31. About $ 4.8 million was removed from this figure after the hackers involved in the 1inch resolver incident returned the stolen funds.
Crypto exploits and scams had one of its worst months in February, titled by the bybit of $ 1.4 billion.
Review: Should cryptographic projects never negotiate with hackers? Probably
