In the wake of the $70 million Curve Finance exploit, a collaborative initiative has been launched to bolster cybersecurity within the decentralized finance (DeFi) sector. The initiative, known as SEAL 911, is a Telegram bot designed to streamline communication with vetted security professionals during emergencies. Spearheaded by Sam (@samczsun), research partner and head of security at Paradigm, the initiative aims to address the challenges of responsible disclosure in cybersecurity, particularly in the face of potential DeFi hacks and exploits.
SEAL 911 brings together representatives from Wallet Guard, Origin Protocol, ChainSecurity, MetaMask, and more, all pledging their expertise during crises. The initiative’s goal is to rapidly gain widespread attention and support from the broader community, security experts, and organizations alike.
DeFi sector’s security concerns amplified by recent hacks
The launch of SEAL 911 aligns with recent hacks that have shaken the DeFi sector. The Curve Finance exploit, triggered by a reentrancy lock malfunction, led to a significant drop in CRV’s price from $0.73 to $0.49 within 48 hours. This incident, along with Euler Finance’s $200 million loss in March, has contributed to more than $800 million in industry losses this year.
The need for initiatives like SEAL 911 is underscored by the fact that between January and November 2022, hackers stole $4.3 billion worth of crypto, marking a 37% increase compared to the same period in 2021.
Despite the recent exploit, Curve Finance has managed to recover almost 75% of the stolen funds. The DeFi community remains vigilant, with Curve offering a 10% bounty of the outstanding funds, worth $1.8 million, for information about the exploiter.
SEAL 911 represents a significant step towards mitigating the risks associated with DeFi exploits. By providing a platform for immediate contact with security professionals during emergencies, it aims to reduce the potential losses from future hacks and strengthen the overall security of the DeFi sector.
