CRV TVL rises 40% to $2.34 billion as Curve team offers 10% bounty against 62 million hack without prosecution

• CRV TVL is up 40% to $2.33 billion after dropping 49% from $3.27 billion to  $1.68b during the hack.
• With a 10% deal on the table, the offer stands until August 6, after which further actions will ensue, including public involvement.
• Curve DAO token is up 5% in the last 24 hours, but trading volume continues to decline, down 55% in the same period.

CRV total value locked (TVL) is rising after the recent hack that stole approximately $62 million in funds. The incident has left the founder, Michael Egorov, at risk of liquidation in a $100m+ position. Notably, this could trigger a substantial implosion in decentralized finance (DeFi).

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CRV TVL rises as Curve Network works out a compromise

CRV TVL is up 48% to $2.33 billion after dropping 50% from $3.27 billion to  $1.57 billion during the hack July 31 hack.

Curve Finance TVL

As reported, the Curve ecosystem has been struggling since the exploit, with its CEO Michael Egorov facing liquidation because of his $168 million holdings in CRV holdings. With his holdings constituting nearly 34% of the market capitalization of CRV token, the CEO was able to offer Over The Counter (OTC) deals and partnerships within the ecosystem, hence his current situation.

Curve DAO token (CRV) is up almost 5% at the time of writing, despite the falling trading volume over the last 24 hours. The token seems to have support at around $0.567, with a lot of uncollected liquidity underneath. As such, CRV price could drop further before a confirmed uptrend.

CRV/USDT 1-day chart

The Relative Strength Index (RSI) at 34 and the Awesome Oscillators (AO) histograms in the negative are concerning, suggesting bears have an advantage in the CRV market.

Curve team agrees to a compromise

To salvage the situation, the Curve team has agreed to a compromise, proposing a 10% bounty to the hacker to return the funds in exchange for no prosecution. The deal is only open until August 6 at 0800 UTC.

Message from Curve.fi

The move is part of the team’s plans to save its CEO from liquidation while at the same time relieving the CRV price from the stress that could worsen further as large volumes of traders look to short the token.  

Based on the announcement, the Curve team wants the hackers to return 90% of the loot, translating to about $55.8 million. For this much, the team is willing to drop the case and let the exploiter keep the remaining 10%, approximately $6.2 million.

The bad actors failing to respond within the allocated timeframe could see the team involve the public in the bounty, extending the same 10% to anyone who can identify the exploiter.

Bounties have become a common bargaining chip in the crypto market, considering the decentralized nature of crypto, making it hard to track stolen crypto and even harder to recover the loot. For a win-win situation, victims tend to agree to a compromise, such that the exploiter returns the bulk of the exploit for a certain percentage of the funds and the promise of no pursuit or prosecution, leaving them free to use the stolen funds.

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