Web3 bug bounty platform Immunefi raises $24 million in Series A funding • TechCrunch

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Around this time last year we reported on Imunefi – one of the emerging error reward and security services platforms for DeFi – has raised $5.5 million in funding. Given that almost 2 billion dollars was lost to crypto hacks and scams this year, it would seem like a pretty low investment.

And, of course, it was. Because Immunefi raised $24 million in Series A. The round was led by Framework Ventures. Other investors include Samsung Next, Electric Capital and Polygon Ventures. This brought his total to $29.5 million now.

Imunefi connects Web3 projects whose code requires verification and protection with whitehat hackers who report vulnerabilities and demand monetary rewards. Sometimes these rewards can be as high as $10 million – which is not surprising when so much cryptocurrency can be at stake. Most tech companies, including Apple and Microsoft, use a similar bug bounty methodology, but the practice has been worse at Web3, in part because hackers sometimes have more incentive to steal money than to report a bug, especially when millions may be on offer. dollars.

Launched in December 2020, Immunefi says it has paid $60 million to whitehat hackers and claims to have saved more than $25 billion in hacking funds.

But bug payouts in cryptography have to work differently than in Web2. A $5,000 payout when $100 million could be at stake is a pittance. Therefore, Immunefi developed a bug bounty standard that scales to encourage projects to pay bounties for large vulnerabilities equivalent to 10% of the funds at potential risk.

That means some huge bug bounties – like the $10 million paid out for a vulnerability discovered in Wormhole, a common cross-chain messaging protocol, and $6 million for a vulnerability discovered in Aurora, a bridging and scaling solution for Ethereum. This contrasts with the largest bug bounty offered by Apple at $2 million.

CEO and founder Mitchell Amador said in a statement: “Open source and monetized exploits have made the Web3 the most controversial software development space in the world. By shifting incentives toward white hats, Immunefi has already saved billions of dollars in user funds. Crypto projects are quickly realizing that using Immunefi is better than publicly asking hackers to return funds or pay a ransom. We are using this promotion to grow our team to tackle this huge challenge.”

Immunefi has competitors, however HackerOne moved from web2 to web3 and Safeheron recently picked up $7 million to make private keys more secure.

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