Fraud and Scams, News & Updates

Harvest Finance Offers $1M to get Stolen Money Back

After the recent attack, Harvest Finance offers $1M bounty to find the hacker who stole nearly $24M from its users.

Earlier, Harvest offered a $100,000, and then a $400,000 bounty.

The attacker uses a flash loan to deflate the prices of stablecoins Tether and USDC on Harvest. Then after that, snatch the tokens up at bargain prices from liquidity pools.

Because of that, the DeFi project’s team looks into many changes. It includes the restricting of flash loans – which allow the users to deposit and withdraw funds at the same time. Harvest refers it to as “theft” in the attack’s post-mortem for the asset values has been manipulated. The firm owns up to the protocol’s shortcomings but has not yet laid out a plan to compensate the users. They are saying that it’s “formulating a remediation plan for affected users.” For the meantime, a “[humble] request that the funds are returned to the deployer so that it can be distributed back to the users.” has been issued.

In the latest tweet, Harvest implies that the team knows who the attacker is but unwilling to doxx them. The company proposed a $100,000 reward, then $400,000, to someone who can convince the hacker to return the funds.

But no one seems to be cooperating, that is why a larger reward has been offered. Harvest also admits that it didn’t have “hard proof” of the attacker’s identity.

If the post shall be believed, the plan is to make its users whole rests on getting the funds back. On Wednesday, it wrote: “Our main focus in Week 9 is to restore funds from the hacker and to mitigate any flashloan attacks that can affect users.”

But there is an ongoing poll whether reparations will be to Tether and USDC depositors thru the IOU token. However, if it fails, the depositors will be facing a portion of the loss. Harvest also tries to make the future attack all but verboten. They asked eight major exchanges to blacklist Bitcoin address by the hacker. Kraken founder, Jesse Powell states:

“Stop fcking up your bllsh*t DeFi scams and expecting exchanges to bail you out. I will not accept your attempt at externalizing the cost of your hasty, reckless rollout.”

Now internalizing the results of its “engineering error” Harvest seems to be doing well. Its FARM token trades above $230 last Sunday; now hovers around $100. Its 7-day drop of 61.8% is the biggest of any coin in CoinGecko’s top 300 coins.

Leave a Comment

Leave a Reply