After losing $2.7 million to a hacker, Solv Protocol is now offering a 10% reward for help catching

Solv Protocol Loses $2.7M in Smart Contract Exploit, Offers Hacker 10% Bounty

Solv Protocol, a Bitcoin-focused DeFi platform, just got hit. One of their token vaults was exploited, costing them about $2.7 million. In a move that's becoming almost routine in crypto, they've offered the attacker a 10% bounty—basically, return the funds and keep a cut as a finder's fee.

According to a post on X, less than 10 users were affected. The project says it will cover the loss of 38.05 SolvBTC, their Bitcoin-pegged token. They've also locked down the vulnerability and are working with Hypernative Labs, SlowMist, and CertiK to figure out exactly what happened.

Solv's whole thing is letting users deposit Bitcoin and get SolvBTC in return, which they can then lend or stake across other chains. They're not small—they hold 24,226 Bitcoin, worth over $1.7 billion, and claim to have the biggest on-chain Bitcoin reserve out there.

The details of the hack are still fuzzy, but security researchers point to a flaw in Solv's smart contract that let the attacker mint an insane amount of protocol tokens. Chris Dior from CD Security says the hacker pulled off 22 transactions, then swapped those hundreds of millions of tokens for just over 38 SolvBTC. Not a bad payday for a few clicks.

Solv posted an Ethereum address on X, hoping the hacker would play ball and take the 10% bounty. So far? Silence. Etherscan shows no messages from that address. No word, no deal.

Security folks are saying the hacker basically printed free tokens and traded them for Bitcoin-pegged stuff. Classic DeFi exploit playbook.