A Web3 expert argues that rewarding hackers with bug bounties for returning stolen funds creates a moral hazard and may lead to more security breaches.
The recent attacks on Kronos and Kyberswap, followed by negotiations with the hackers, highlight the risks of relying on appeasement tactics in cybersecurity.
Critics, including Davinder Singh of Rocketx, believe that while bug bounties are meant to enhance security, they inadvertently incentivise malicious actors, potentially increasing the risk of attacks.
The increasing frequency and boldness of attacks on digital asset platforms are eroding user confidence, calling for more robust preventative measures like real-time software code inspections.