
Ignas | DeFi|Mar 04, 2025 10:17
Bybit asked to return 44.67 ETH from the Paraswap DAO that Bybit hacker paid in SWAP FEES.
This decision has ethical and legal responsibilities against the DAO and sets a precedent for the wider DeFi ecosystem (notably Thorswap).
I'm a Paraswap DAO delegate but still split on how to vote:
On the one hand, DAO profiting from a hack is bad optics. Returning it shows support for another industry player against a sanctioned state actor.
And keeping the funds may attract regulatory scrutiny. Bybit is a strong actor so returning avoids legal headaches. 44.6k ETH is not that much.
But!!! I'm worried on about setting precedents for DeFi:
Code is law. The DAO earned the fees legitimately via smart contracts. And if funds are returned now, what about future cases? Sets a dangerous precedent.
And at the end of the day, Bybit’s poor security (I know Safe UI was compromised, but still) led to the hack.
Should DAOs cover for CeFi mistakes?
I'm leaning towards returning most of the fund minus 10% Bybit official bounty.
Just worried about the precedents being set here.
What am I missing?
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