CrossCurve Implements White Hat Policy After Vulnerability Exploitation in Its Bridge

CrossCurve has confirmed that its cross-chain bridge was exploited due to a vulnerability identified in its smart contract. According to Odaily’s report, the incident resulted in incorrect token distribution to multiple addresses, prompting an immediate response from the project team. To contain the situation, CrossCurve has implemented an aggressive recovery strategy that includes activating its white hat policy, a mechanism designed to incentivize voluntary fund returns.

Incident Details: Tokens Misallocated Due to Security Flaw

The smart contract vulnerability allowed certain assets to reach wallets that were not their legitimate recipients. The project team emphasized that there is no evidence of malicious intent behind these compromised addresses, framing the situation as a technical failure rather than a deliberate theft. CrossCurve has urged users to suspend all interactions with the platform until the investigation is complete, stating that they will provide official updates through their authorized channels.

The White Hat Approach: Encouraging Collaboration

Under its white hat policy, CrossCurve offers up to 10% of recovered assets as a reward to those who cooperate in returning the misappropriated funds. This approach is notable in the crypto community, as it potentially turns holders of incorrectly distributed tokens into active allies in the recovery process. The policy sets a 72-hour window (starting from Ethereum block height 24,364,392) for asset holders to contact the team and negotiate the return.

Gradual Consequences: From Cooperation to Coercive Measures

If the funds are not returned within the specified timeframe or contact is not established, CrossCurve has warned that it may escalate its actions. The team considers legal procedures, both criminal and civil, against the involved wallets. Additionally, the platform plans to actively collaborate with cryptocurrency exchanges, stablecoin issuers, and on-chain analysis firms to track and potentially freeze the misappropriated assets, significantly increasing pressure on token holders.

Final Reflection: A Progressive Recovery Model

CrossCurve’s white hat approach reflects an emerging industry trend where projects seek collaborative solutions before resorting to punitive measures. However, the backing of legal sanctions and asset freezes underscores the team’s determination to recover the compromised funds under any scenario.