LayerZero Partners With Immunefi to Offer Up to $15M Bug Bounties
According to a report from Wednesday, May 17th, LayerZero Labs recently partnered with security services platform Immunify to start a new bug bounty program. The program aims to boost the security of the former’s cross-chain messaging protocol and will pay rewards of up to $15 million to white hat hackers.
LayerZero Launches Largest Bug Bounty Program to Date
LayerZero Labs recently partnered with Immunify to launch a major new bug bounty program that will offer up to $15 million to white hat hackers for any discovered vulnerabilities. The program is aimed at boosting the security of the former’s LayerZero cross-chain messaging platform.
Co-founder and CEO of LayerZero Labs, Bryan Pellegrino, explained that his company has enough money to pay the bounties and highlighted the importance of the security of its protocol. He explained that the funds will come from his firm’s equity entity.
The bug bounty, created in partnership with Immunify, a major security services platform, is the largest the digital assets industry has seen so far. Prior to today’s news, that honor was held by MakerDAO’s $10 million program.
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Why do Crypto Companies Offer Large Bug Bounties?
The size of LayerZero Labs’ bug bounty program, and indeed the prevalence of such initiatives in the cryptocurrency industry is hardly surprising considering the sheer number of hacks, scams, and other theft present in the sector. In fact, according to a report from late December, approximately $3.7 billion were taken in various attacks in 2022 alone.
Additionally, considering the fast-paced and dynamic nature of the industry, scammers and fraudsters are still finding significant success within the sector. Perhaps the most interesting, if not successful, example came earlier this year when the Twitter account of an Indian government official was hijacked and used to promote an XRP scam.
Digital assets hacks and cyberattacks have even moved beyond the realm of individual bad actors. Perhaps the most notorious group of cybercriminals targeting digital assets is the Lazarus Group which is widely believed to be under the control of the North Korean government. The group, and other hackers from the country, are believed to have stolen around $1 billion in cryptocurrency over the course of 2022.
Do you think bug bounty programs are an effective way to stop malicious hackers? Let us know in the comments below.