Crypto investors can now breathe a sigh of relief as hackers responsible for the theft of nearly 5,495 Ethereum (ETH) from Curve Finance have voluntarily returned the stolen funds, worth approximately $10 million. The positive development was confirmed by an official announcement made by JPEG’d, a decentralized loan company specializing in NFT-based collateral borrowing.

The JPEG’d DAO confirms receipt of 5,494.4 WETH back to the JPEG’d Multisig for a total of 5,495.4 WETH. A 10% white-hat bounty of 610.6 WETH was awarded to the owner of the address that recovered funds from the pETH exploit.https://t.co/nIBwHHxfQU

— JPEG’d (@JPEGd_69) August 4, 2023

Following the breach at Curve Finance, Metronome, Alchemix, and Curve issued a joint statement on August 3, initiating efforts to reclaim the lost money. As part of a united front, the hacker was offered a 10% reward for their cooperation, with the assurance of no legal consequences in exchange for returning the remaining 90% of the funds.

Remarkably, less than a day after the bounty was proposed, the hacker willingly surrendered, signaling their participation in the White-hat bounty program. To ensure the integrity of their intentions, the hackers opted to relinquish the $1.1 million reward they would have received for breaching the JPEG-encrypted protocol, choosing instead to return the associated cash.

JPEG’d, the creators of the NFT-Fi system at the heart of the breach, went above and beyond in their response. They declared that any further investigations or legal proceedings against the hacker would cease, adopting a white-hat rescue approach to the incident.

The saga began on July 31, when hackers successfully exploited Curve Finance, pilfering around $47 million worth of bitcoins. On top of that, the JPEG’d protocol suffered a loss of $11.6 million in cryptocurrency.

The quick resolution of this cyber-heist highlights the potential benefits of collaboration between crypto platforms and ethical hackers. By embracing a united front against malicious actors, the decentralized finance community demonstrates its commitment to safeguarding users’ assets and promoting trust within the ecosystem.

Moreover, the successful recovery of the stolen funds serves as a significant deterrent to potential cybercriminals, as it shows that the crypto community is prepared to take proactive measures to protect its interests.

However, the incident also underlines the importance of continuous efforts to bolster security and resilience in the fast-evolving world of digital finance. As the crypto landscape continues to attract attention from investors worldwide, the focus on robust security measures and collaborative initiatives remains paramount to safeguarding this burgeoning market.