Crypto billionaire and FTX CEO Sam Bankman-Fried have developed a strategy to combat cryptocurrency hacking. Surprisingly, the SBF approach includes compensating hackers.
As per data from multiple sources, more than $750 million has already been stolen in crypto hacks this month.
Crypto billionaire and FTX CEO Sam Bankman-Fried have developed a strategy to address the issue of cryptocurrency hacking. Surprisingly, the SBF solution involves rewarding the hackers.
In his most recent blog post, the FTX CEO advocated a "5-5 standard," in which the hackers kept 5% of the total funds stolen, or $5 million, whichever is less. Other conditions indicate that the hacker is acting in "good faith" and wants to cooperate in restoring the majority of the crypto assets.
Some crypto hackers are also white-hat hackers that aim to reveal flaws in the protocol in exchange for a reward rather than making malicious profits.
However, SBF is unclear about the appropriate criteria for this process. In addition, the FTX CEO stated:
“It's critical to maintain the flexibility of DeFi and P2P transfers. There are policies that I believe are essential for achieving this. I might be mistaken about those policies—and I probably am! The most essential thing, though, is to keep trade and expression free.”
DeFi protocols, as previously stated, have been the most vulnerable to hackers this year. So far in 2022, the DeFi protocols have cost more than $4.4 billion.
FTX On Crypto Regulations
Sam Bankman-Fried also stated that before listing crypto assets, the U.S. arm of the crypto trading platform FTX would perform its own investigation to see if they function as securities.
SBF stated in the blog post that FTX intends to employ its own framework for crypto securities until the SEC provides more clarification. This internal framework, however, does not ensure that FTX will be exempt from SEC scrutiny.
Read also: ETH Alarm Clock Attack Has So Far Resulted In $260K In Stolen gas fees
