Crypto assets considered hackproof are now only a myth, with numerous exploits conducted by hackers and siphoning crypto assets worth millions. As per data obtained from Chainalysis, in October, more than $750 million have already been lost in crypto hacks.
Crypto billionaire and FTX chief Sam Bankman-Fried have a plan to deal with the problems of crypto hacks, and interestingly it also involves rewarding the hackers.
The FTX chief has proposed a 5/5 plan which envisages giving the hacker 5% of the funds stolen via a hack or $5 million, whichever is smaller. More paybacks will be available if the hacker acts in good faith and intends to cooperate and return all the stolen funds.
The world of crypto hacking is composed of players with dubious backgrounds but also include white hat hackers who sniff out chinks in the security of any protocol and, in return, gain financial rewards.
The FTX Chief noted:
“Hacks are extremely destructive to the digital asset ecosystem. The 5-5 approach would have curbed the impact of hacks more than 98%”.
However, SBF was unsure if this was the right path to follow to tackle the evil of hacking. One of the most prominent riders attached to the spread and proliferation of the crypto sector is to keep the DeFi and Peer to-Peer free. SBF stated this and added that the most important thing is to keep commerce and expression free.
DeFi protocols have been attacked with increasing frequency, and to date this year, hackers have managed to siphon off a sum of more than $4.4 billion.
FTX Chief On Crypto Regulations
Sam Bankman-Fried has stated that its US branch of crypto trading platform FTX is deliberating to categorize crypto assets work as securities before listing them. He added that FTX would use its in-house framework for crypto securities until there is more clarity from SEC.