After discovering a security flaw in the encryption bridge Nomad system, Hackers stole over $190 million in cryptocurrency august 1 nomads 10% bounty issued Its stolen funds as part of its damage control efforts. If hackers return 90% of the stolen cryptocurrency, they have the right to keep the rest. Nomad also promised not to take legal action against these “white hat” hackers.In partnership with Metagame, Nomad is Now also offering NFTs For remorseful hackers, if they return the stolen cryptocurrency.
why it matters
Community Reception for Nomad Announcements already mixed. If you put yourself in the position of one of the thieves who ransacked Nomad’s store, a “no utility” NFT won’t be enough to force you to return hundreds of thousands (if not millions) of dollars in stolen cryptocurrency. So why does Nomad think this will make the deal sweeter? Because it’s not always about money.as part of metagame effort To “identify behavior that aligns with the values of communities large and small,” they partnered with Nomad to provide NFTs for white hat hackers. Metagame founder Brenner Spear Tweets on TuesdayAnd, Nomad and Metagame’s pleas to cyberthieves don’t seem to fall on deaf ears. According to an Aug. 18 blog post, about 20 percent of the stolen funds have gone back to Nomad. That’s more than $37 million — most of which came from a recovery wallet set up by Nomad for hackers looking to make amends.
Cynics might think Nomad’s strategy of recovering stolen funds is naive, but it’s not. Nomad’s move reflects a long-term strategy to ensure Web3’s continued success. It all starts with building a community centered around trust and goodwill. “We support people doing the right thing, even for the wrong reasons, and we hope things like this encourage more people to do the right thing,” reads a post on the Nomad White Hat Awards website. Of course, Nomad doesn’t rely solely on ideals to solve this situation. As stated in its Aug. 18 blog post, Nomad is continuing its efforts to compensate users who were hacked. As of press time, Nomad is in the first phase of its resumption of work and is working with law enforcement and blockchain forensics firms to track down black hat hackers and stolen funds. The second phase is expected to begin in mid-to-late September and will focus on how to return lost funds fairly to users. The third phase is planned for some time in the near future, with the reopening of the Nomad bridge, in addition to giving users a new option to “unlock” funds locked after the hack.
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