CoinEx Offers “Generous Bug Bounty” in Attempt to Recover Stolen Assets

Following a security breach that shook the cryptocurrency community, CoinEx is employing an unusual strategy to retrieve stolen money. The exchange has written an open letter to the guilty hackers, promising a sizeable “bug bounty” as compensation if the stolen funds are recovered.

An Unprecedented Move

The open letter from CoinEx to the hackers shows a novel approach to problem-solving. The exchange recognises the seriousness of the breach and the effect it has on its users in it. The letter invites the hackers to have a productive conversation while expressing sympathy for the worries and frustrations of the impacted people. It says, “We encourage you to actively engage in conversation and negotiation with us via the blockchain or our official email address.”

The Bounty Offer

In its letter, the exchange expresses its readiness to pay the hackers a “generous bug bounty” as a reward for returning the taken property. CoinEx’s dedication to recovering the monies and its aim for a more secure and user-friendly settlement are both shown by this unconventional strategy.

Significant Losses

The damages brought on by the security breach have been pegged at about $70 million by CoinEx. Unauthorized transactions using Ethereum (ETH), Tron (TRON), and Polygon (MATIC) have been discovered during preliminary investigations. CoinEx notes that the impacted funds make up a very tiny part of its total assets, even though the precise amount of the loss is yet unknown.

Compensation and Resumption of Services

CoinEx has guaranteed the impacted users that they would get full compensation for any damages sustained during the security breach in addition to the bug reward offer. Additionally, the exchange has supplied information about the restart of withdrawal services.

CoinEx, on the other hand, urges caution, claiming that any assertions indicating the quick resume of withdrawal services are untrue and could be associated with frauds. In order to protect assets above all else, the exchange has specified its plan for gradually resuming these services within seven working days.

The novel strategy used by CoinEx to recover funds that have been stolen—offering a bug bounty—illustrates how cryptocurrency security is developing. The exchange’s dedication to protecting the interests of its users and its desire for a secure conclusion are obvious, even though the issue is still developing. The success of this unusual initiative is still up in the air as the bitcoin community keenly monitors it.