Crypto Hackers Unite: Creating a Crime-Fighting Collective

A new nonprofit organization called Security Alliance has been launched in the United States to provide support for ethical hackers, known as “white hat” hackers, who can recover funds from malicious attackers. Led by samczsun, head of security at crypto venture capital firm Paradigm, the initiative aims to unite a team of blockchain security specialists. The organization was publicly announced on February 14th. Security Alliance has three ongoing projects, including a hotline for requesting security assistance, a war games program to help developers prepare for security risks, and an innovative initiative called the Whitehat Safe Harbor Agreement. This program offers legal protection and incentives for white hat hackers to rescue funds under active exploitation.

Through the Whitehat Safe Harbor Agreement, Security Alliance allows white hat hackers to recover funds without fear of legal consequences, as long as they act lawfully, competently, and in good faith. The protocol and its members waive their right to pursue legal claims against these hackers. It is important to note that engaging in such agreements carries inherent risks due to the complexity of the legal landscape.

The inspiration for Security Alliance came from the Nomad hack that took place in August 2022. During the recovery of the Nomad funds, many white hat hackers participated, but the lack of a legal framework supporting their actions hindered their effectiveness. Security Alliance was formed to address this issue and provide a platform where white hat hackers can collaborate and contribute to fund rescues.

While samczsun is the only individual specifically mentioned on the Security Alliance website, other members are identified on X as group members or have self-identified as such. The organization boasts over 50 donors and partners, including prominent names in the crypto community such as the Ethereum Foundation, Vitalik Buterin, a16zcrypto, Paradigm, Electric Capital, and Coinbase. It has been reported that the group has raised over $1 million, with Buterin himself contributing $500,000 to the cause.

The need for initiatives like Security Alliance is evident as the crypto industry continues to face significant losses from hacks and scams. In 2023 alone, an estimated $2.61 billion was lost to such incidents, with only a small fraction of the funds recovered. The constant emergence of new hacking technologies underscores the importance of supporting and empowering ethical hackers to combat these threats effectively.