Sam Bankman-Fried has created a framework to limit the impact of hacks and exploits plaguing the industry, including capping bounties for attackers at $5 million.
This comes after the post-heist transaction where hacker got to keep $50 million of the roughly $100 million withdrawn from the Mango decentralized financial application.
Other key requirements are that the customer must be recovered and that the hackers act "in good faith" and have the full intention of working together to return most of the assets.
He said, “Hacks are extremely destructive to the digital asset ecosystem". His 5-5 approach can curb the impact of hacks “more than 98%” but that he’s unsure what the right standard would be.
According to data from blockchain specialist Chainalysis Inc., most exploits and hacks this year targeted DeFi.