The Mixin Network recently proposed a $20 million bug bounty to a hacker in a $200 million security breach litigation. The breach itself was relatively small, involving the theft of about $600 in crypto tokens, mostly from Chinese citizens. However, due to the sheer amount of affected users and the scale of the breach, the hacker was ordered to pay a large chunk of the damages.
By proposing a bug bounty, the Mixin Network has taken a step towards protecting their customers by addressing potential security vulnerabilities that could leave users vulnerable to similar attacks in the future. By incentivizing hackers to find and report those vulnerabilities, the Network will be able to strengthen their overall security and build trust with their customers. The bug bounty has the potential to pay out much more than the settlement amount, providing the hacker with a larger monetary reward if they are able to identify the flaws in the Network’s security and propose solutions that prevent future breaches.