Transit Finance Convinces Hacker to Return $2m to Protocol
Earlier this month, Transit Finance, a Decentralized Finance (DeFi) protocol, unveiled it was hacked for $21 million, marking the sheet as one of the latest protocols to suffer exploitation this year.
In an unusual turn of events, the protocol has come out to announce that from its conversation with the biggest hacker, there is an agreement to return a significant portion of the funds.
With Transit Finance ready to take the hacking event as a White Hat, the protocol said its main hacker would return 6,500 BNB in the first tranche and return another 3,500 BNB when the protocol has come through with the payment reward promised.
“After friendly communication with white hat #1 (the biggest hacker), we have both reached a consensus. White hat #1 stated that he would refund the users’ 6,500BNB as soon as possible today and promised to refund another 3,500BNB when TransitFinance Official initiates the second phase of refunds. Ultimately white hat #1 will keep 2,500 BNB as a bounty for this event,” the protocol said in a Monday announcement. “TransitFinance Official expresses its gratitude to white hat #1 for the refund and promises that if white hat #1 returns the remaining 3500BNB as agreed, TransitFinance Official will no longer hold him any legal responsibility.”
The DeFi protocol said it has filed for legal proceedings, and while it will make good on its promise not to launch a lawsuit against Whitehat #1, the protocol said it would not hesitate if other hackers do not return the funds stolen.
Relying on whitehat-hinged refunds is not something that is uncommon and was made popular when the hacker who stole over $610 million from the interoperability network Poly Network returned the complete funds stolen last year.
When Poly Whitehat refunded the cash stolen, many protocols started appealing to the hackers, and a few, like Transit Finance, has recorded success in their moves.
Image source: Shutterstock