Major Crypto Exchange Launches Bounty Following $387M Hack

The crypto community is on high alert after a massive security breach resulted in the loss of hundreds of millions in digital assets. Initial loss estimates of $351.6 million have been revised upward to approximately $387.5 million. In response, the affected exchange has rolled out a formal recovery bounty program.

The Bounty Structure: Two-Tiered Rewards for Freezing and Recovery

The program outlines a clear, two-phase incentive model:

  • Freezing Reward: Individuals or entities that provide actionable intelligence leading to the successful freezing of stolen funds will receive a reward equivalent to 5% of the frozen amount.
  • Recovery Reward: If the assistance further leads to the full recovery of the funds to the exchange's control, an additional 5% of the recovered sum will be granted.

Potentially, this could mean a total reward of up to 10% of the involved funds. The exchange retains the right to determine eligibility and final reward amounts, noting that actions mandated by courts or legal proceedings are excluded from the bounty.

Industry Collaboration: Stablecoins Frozen, On-Chain Hunt Intensifies

A coordinated industry response is underway. Leading stablecoin issuers Circle and Tether have complied with requests to freeze assets linked to the hacker's addresses, totaling roughly $318,000 in USDC and USDT.

The exchange's CEO publicly appealed on social media for assistance from other trading platforms, blockchain security researchers, and on-chain investigators. To facilitate collaboration, the exchange has launched two key tools:

  • A Real-Time Tracking Dashboard: Publicly displays the movement of stolen funds across various blockchains.
  • A Dedicated Tip Line: Provides a formal channel for submitting information and evidence.

Cross-Chain Trail: Funds Dispersed Across Multiple Networks

Early analysis indicates the stolen funds have been moved across several major blockchain networks, complicating the tracking effort. Investigators are focusing on activity across:

  • Ethereum and its compatible networks (e.g., Arbitrum, Polygon)
  • XRPLedger
  • The privacy-enhanced Zcash network
  • The TRON network

This cross-chain strategy underscores the complexity of the recovery mission and the exchange's need to leverage global expertise in on-chain analysis. The hunt for the nearly $400 million in stolen crypto assets continues.