Home crypto news Billionaire Bankman-Fried Tries to Fix Crypto’s Hacking Problem

Billionaire Bankman-Fried Tries to Fix Crypto’s Hacking Problem

by pfuwi
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(Bloomberg) — Crypto billionaire Sam Bankman-Fried has outlined a framework for limiting the impact of the hacks and exploits plaguing the industry, including capping the maximum bounty for attackers at $5 million.

His intervention comes just days after a hacker got to keep $50 million of the roughly $100 million drained from the Mango decentralized-finance application under a deal with the platform after the heist. Over $3 billion has been looted from the crypto sector this year, which is set to be a record for hacking.

Bankman-Fried, co-founder of digital-asset exchange FTX, proposed in a blog post what he called a “5-5 standard” where hackers keep either 5% of the amount they’ve taken from a protocol or $5 million, whichever is smaller.

Other key provisos are that customers must be made whole and that the hacker is acting in “good faith” and fully intended to cooperate and return most of the assets. In crypto, attackers are sometimes viewed as white-hat hackers who seek to expose vulnerabilities in return for a reward rather than to make malicious gains.

Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, after an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, Aug 17, 2022. Crypto exchange FTX US is expanding its no-fee stock trading service to all US users, including non-crypto investors, in a move to expand its customer base and increase assets under custody.
Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange.

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