- Increased hacking incidents have been another highlight this year after the market meltdown in May
- So far, $3 billion worth of digital assets have been stolen, with October figures standing at $720 million
FTX CEO Sam Bankman-Fried (SBF) has suggested a way to deal with the growing number of security breaches and stealing of digital assets, which has crossed $3 bill, so far, this year. In a blog, SBF has suggested a 5-5 standard under which hackers would be allowed to keep the lesser of $5 million or five percent of the stolen assets, a Bloomberg report said.
SBF has proposed a framework to mitigate the effects of hacks and security exploits that have plagued the industry. This includes setting a maximum bounty of $5 million for the attackers.
His move comes after a hacking incident resulted in the draining of $100 million from the Mango Defi application but the hacker was allowed to keep $50 million as part of a deal. To date, hackers have stolen more than $3 billion from the cryptocurrency industry.
SBF proposed a “5-5 standard”, whereby hackers can keep either US$5 million or 5% of the assets they’ve stolen from a network.
Also crucial are the stipulations that the hacker intends to cooperate, and returning the majority of the assets.
Attackers are in some cases viewed as white-hat hackers in the crypto community, whose motivation is to help fix the system by finding and disclosing security flaws in exchange for compensation.
The FTX CEO stated, “Hacks are extremely destructive to the digital asset ecosystem,” adding that his 5-5 suggestion would reduce the impact of hacks by over 98% but he is still not clear what the right standard can be.
According to research conducted by Chainalysis Inc, a blockchain technology company, the majority of exploits and hacks this year have focused on Defi.