In a rare win for diplomacy in the decentralized finance (DeFi) world, Texture Finance, a protocol built on the Solana blockchain, has recovered 90% of the $2.2 million lost in a recent exploit.
The attacker accepted a public bounty offer: return the majority of the stolen funds and keep 10% as a reward, thus avoiding legal prosecution. This unusual approach led to a swift resolution and near-complete restitution.
⚠️ Vulnerability in Smart Contract Opened the Door
The breach occurred on July 9, when the attacker exploited a vulnerability in one of Texture’s vault smart contracts, specifically affecting the USDC vault. The developers immediately disabled withdrawals and activated a “war room” protocol with auditing partners on board.
In a public message on X, the team offered a compromise:
“Keep 10% – if you return the rest. Otherwise, we’ll involve law enforcement.”
The ultimatum seemed to work — within 24 hours, the attacker returned 90% of the stolen USDC to a designated address, effectively claiming the bounty and avoiding further consequences.
🤝 Ethical Gray Zone? A Diplomatic Win Amid Controversy
Texture Finance stated:
“Since the attacker fulfilled their side of the deal, we will not pursue the matter further.”
This case joins a growing list of ‘gray-hat’ exploits, where hackers breach vulnerable protocols but later return most or all of the funds in exchange for immunity or a reward.
A similar situation happened in zkSync, where an attacker returned $5.4 million after community pressure and a 10% bounty offer.
While some consider these deals a pragmatic solution, others criticize them for blurring the line between ethical hacking and extortion.
🔧 Fix Underway, Withdrawals Still Suspended
The Texture team confirmed that a full code fix has been developed and is currently under audit. However, withdrawals remain suspended, and no timeline has been given for resuming regular operations.
“Deposits are functioning as normal, but withdrawals are disabled,” the team noted.
🌩️ A Turbulent Week for DeFi Security
The Texture exploit came on the same day another major protocol — GMX on Arbitrum — suffered a $42 million loss due to a separate vulnerability. Like Texture, GMX also offered a 10% white-hat reward to the attacker.
These incidents underscore the ongoing security challenges in the DeFi space, especially as smart contracts become more complex and composable. Even well-audited platforms remain at risk when vulnerabilities go unnoticed.
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