Cryptocurrency Company to Give ‘Millions of Dollars’ as Reward for ‘White Hat Hackers’ After $190 Million Heist

A cryptocurrency theft worth $190 million has forced cryptocurrency “bridge” service Nomad to offer millions of dollars as a reward to anyone who recovers the stolen money, The Washington Post reported.

Specifically, Nomad advertises a payout of up to 10% for Nomad Bridge hackers, with Nomad classifying any party that returns at least 90% of the total assets they stole as a “white hat.”

The company said in a Medium post that they will not be taking any legal action against white hats.


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“White Hat and Friends Ethical Researchers”

It’s worth noting that white hackers are people who investigate company networks and often accept cash in exchange for finding security holes.

Nomad asked people who had obtained some or all of the stolen cryptocurrency to immediately transmit it to a certain wallet address in a post on Twitter addressed to his “ethical white hat researcher friends”.

“Nomad will also identify you as a white hat to any third party that may be considering legal action,” the company writes in a Medium post.

The cryptocurrency firm also said that they are “working closely” with law enforcement and will not pursue criminal charges when white hats return stolen funds.

The hackers were able to steal roughly $190 million worth of tokens thanks to a flaw in Nomad’s programming, which made the heist possible.

As of Friday morning, more than $20 million had been recovered, according to blockchain analytics site Etherscan.

Also read: Thousands of Solana Users Lose Funds After ‘$8M Crypto Heist’

The biggest crypto heist in history

Nomad plays the role of a blockchain bridge, allowing users to transfer assets between blockchains, such as from bitcoin to Ethereum. However, that also leaves people exposed to both sides, or flaws in either blockchain, as security experts call it.

According to blockchain analytics firm Elliptic Connect, the Nomad breach was the eighth largest cryptocurrency theft in history and the sixth significant incident involving a crypto bridge in 2022.

Ronin, a cryptocurrency bridge with a difference, was the victim of a $625 million heist earlier this year. In that incident, hackers gained access to the blockchain underlying the well-known video game Axie Infinity and stole at least 174,000 Ethereum.

Since anyone could duplicate the initial hacker’s code, anyone could get involved and withdraw money, giving rise to the “round robin” nature of the Nomad attack.

According to Elliptic Connect, more than 40 “exploiters” have been found, including a hacker who acquired just under $42 million by automating the withdrawal procedure.

Related article: Crypto Collapse Threatens Crypto Stolen From North Korea Amid Its Nuclear Tests

This article is property of Tech Times

Written by Joaquin Victor Tacla

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