Bug bounty economics can backfire across crypto. Platforms underfund security rewards, then scramble with recovery offers post-hack.
When finding vulnerabilities pays less than exploiting them, researchers exit. Misaligned incentives create predictable outcomes.
Story below.
The founder of @EurekaCrypto fell for a malicious Zoom link, losing $13 million in a phishing attack on @VenusProtocol
Venus froze the protocol, rushed a governance vote, and force-liquidated the attacker’s collateral - recovering all funds within 12 hours.
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3 weeks from launch to exploit - $5 million drained from @BetterBank_io, leaving users lighter while the protocol’s own reward logic printed the cash.
A simple incentive flaw triggered catastrophic losses, exposing how quickly DeFi math can turn on you.
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The @USTreasury wants DeFi identity checks. Some protocols may already have the infrastructure - admin keys, blacklist functions, compliance switches that could be repurposed. Who’s ready for KYC DeFi? Oct. 17th comment deadline could decide the future of US Defi.
Story below.
We hardened smart contracts against exploits, then got rekt by a fake Solidity extension. AI bots got gaslit into moving ETH, devs trusted poisoned IDEs.
The blockchain is immutable, but some of the brains building on it are running on compromised autopilot.
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1/ EVM PROXY HACKERS ARE BACK ON MORE CHAINS
If you are a smart contract developer and deploying upgrade proxy contracts, you are at risk.
This is even if you're deploying on chains without MEV, like @base
A thread
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A $550K lesson: @coinbase granted ERC-20 approvals to @0xProject permissionless Settler contract - exactly what docs warn against.
An MEV bot exploited the permissions to drain hundreds of tokens, adding to ongoing security failures.
Story below.
Teaching might be the most noble activity ever.
I'm a big student. Here are some of my teachers when I was starting out in web3 a few years ago
- @cmichelio writing the blogpost about making lots of $$$ from security contests, reading his findings
- @andyfeili posting YouTube…
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