Sentiment.xyz is backing a $95,000 offer in an attempt to arrange the return of stolen funds, as seen on the project’s Twitter page on April 5.

Bounty offered to Sentiment hacker.

The reward was initially offered in an on-chain transaction on the Arbitrum blockchain. The decoded on-chain message reads, in part:

“To the hacker: we will offer you [$95,000] and will not pursue this, if you return the money by 8am utc 6 April…Do the right thing.”

That message also says that the offer will instead go to any individual who helps locate the attacker if the stolen funds are not returned by the deadline.

Sentiment did not publicly announce the offer. Instead, it retweeted another user’s screenshot of the offer on its own Twitter account. As such, it seems to be the originator of the offer — though the anonymity of the transaction makes this unclear.

Reports from MyCrypto founder and Metamask developer Taylor Monahan suggest that the attacker returned 414 ETH ($792,000) around 10:30 p.m. UTC. If so, the attacker likely exceeded the project’s request and initially returned most of the $1 million stolen. However, Sentiment itself has not confirmed that it has received the funds.

The incident has drawn comparisons to a recent attack against Euler Finance. However, that project similarly managed to negotiate the return of stolen funds.

Sentiment saw up to $1 million stolen.

Sentiment was hacked on April 4. Though initial estimates placed the amount stolen at $500,000, later estimates suggested as much as $1 million was stolen.

Following its first announcement, Sentiment said it paused its main contract to allow only withdrawals. The project additionally stated that it has been able to patch the issue and noted that users can now repay debts and unwind positions.

Sentiment added that recovering funds is its primary goal. In addition, it said that it is working with law enforcement and “close contributors” to locate the hacker — an effort that will be unnecessary if the attacker is cooperating with the project.

The post Hacker returns $792k following Sentiment offer of $95K for return of stolen funds appeared first on CryptoSlate.

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Filed under: Bitcoin - @ April 6, 2023 9:30 am