Decoding The Avraham Eisenberg Arrest And Its Impact On Crypto Bug Bounties, White Hat Hackers

The arrest has sparked an interesting debate regarding the role of white hat hackers and bug bounty programs in the security of the DeFi ecosystem. This is because Eisenberg eventually returned most of the loot and his exploit also shed light on vulnerabilities within the Mango Markets protocol. These are all the markings of a white hat hacker.

What is a white hat hacker?

White hat hackers, also known as ethical hackers, are computer security experts who use their skills to identify and fix vulnerabilities in computer systems and networks. In the context of cryptocurrency, white hat hackers may be hired by cryptocurrency exchanges, wallet providers, and other companies in the industry to test the security of their systems and help prevent cyber-attacks.

They may also be independent security researchers who discover and report vulnerabilities in cryptocurrency-related systems to improve security in the industry. White hat hackers are distinguished from “black hat” hackers, who use their skills for malicious purposes such as stealing sensitive data or spreading malware.

In many instances, white hat hackers carry out an exploit and then return most of the funds, only holding onto a small chunk of the loot as a fee for uncovering a vulnerability. This is way better than losing all the funds to bad actors or hacking outfits like North Korea’s Lazarus Group that uses ill-gotten funds to fuel their weapons program.

Also, sometimes it is necessary to carry out the exploit to verify the legitimacy of a vulnerability….