[HN Gopher] Sei pays out $2M bug bounty
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       Sei pays out $2M bug bounty
        
       Author : sygma
       Score  : 165 points
       Date   : 2024-06-17 19:49 UTC (3 hours ago)
        
 (HTM) web link (usmannkhan.com)
 (TXT) w3m dump (usmannkhan.com)
        
       | dheera wrote:
       | Honest question: Was the $2M figure advertised in advance? Where
       | does one go about discovering bug bounties of this size?
       | 
       | It seems like it might be worth the gamble of taking 3-6 months
       | off work to discover a bug of that size.
        
         | nailer wrote:
         | > Was the $2M figure advertised in advance?
         | 
         | https://blog.sei.io/bug-bounty/
         | 
         | > Where does one go about discovering bug bounties of this
         | size?
         | 
         | - SECURITY.txt for individual projects.
         | 
         | - https://immunefi.com for blockchain in general.
         | 
         | - BugCrowd and HackerOne for wider tech.
         | 
         | I'm an infrastructure engineer though and may not be the best
         | person to answer.
         | 
         | > It seems like it might be worth the gamble of taking 3-6
         | months off work to discover a bug of that size.
         | 
         | https://www.hackerone.com/ethical-hacker/meet-six-hackers-ma...
         | 
         | Note: I work at a foundation for another blockchain. This
         | doesn't affect anything I wrote above, just disclosing
         | potential CoI.
        
         | danielvf wrote:
         | You can see lots more here:
         | 
         | https://immunefi.com/bug-bounty/
        
         | consumer451 wrote:
         | Yes, that is actually worth it. This seems comparable to what a
         | third party might pay.
         | 
         | I have always wondered why the payouts are capped at the
         | trillion dollar corps at such low figures. It appears like $75k
         | max and MS and $100k max at Apple. Meanwhile shady 3rd party
         | groups will pay you 10x that, won't they?
        
           | cge wrote:
           | Cryptocurrency bug bounty programs perhaps have an advantage
           | in that the risks of classes of bugs are often concrete,
           | financially quantifiable, immediate, and catastrophic. A bad
           | RCE in a mainstream OS could do untold damage to users,
           | reputational damage to the company, and so on, but even if
           | severe, those risks have to be estimated. But in this case,
           | for example, it seems like the $2m bounty was for a bug that,
           | if exploited, would have made $1b in market cap disappear. I
           | expect it's just much simpler to convince a skeptic
           | businessperson when the risks are so clear.
        
             | consumer451 wrote:
             | That's a very solid point, as sad as it is.
             | 
             | I suppose the argument for OS makers to raise their rates
             | might be that they are paying 10x below market rates, and
             | the rates were set by the actual freaking market that
             | exists.
             | 
             | If I was a congressional aide, I would definitely write
             | something up about this when my boss was going to drag a
             | Microsoft exec across the coals in public. I would imagine
             | that billions in gov contracts are at risk for MS right now
             | due to lax security. A $2M bug bounty could have prevented
             | that.
        
           | stevage wrote:
           | I wonder if very large bounties create incentives to create
           | bugs...
        
             | consumer451 wrote:
             | Oh yeah, the old cobra effect. However, you could only pull
             | it off once. I am sure a postmortem of all related design
             | and commits would be done, correct?
             | 
             | Also, FAANG level salaries are pretty high for anyone
             | involved with that type of code, right?
        
         | usmannk wrote:
         | It was advertised in advance, but the real gamble is on if
         | they'll pay. If you go to my other blogpost linked in OP, you
         | can see a case where I was owed 500k and paid 60k.
         | 
         | You're right though that it's a lot of risk. It's not something
         | that most of the leaderboard works full time on, though some of
         | us do. The immunefi homepage has a list of all the bounties on
         | offer.
        
           | teyc wrote:
           | Couldn't there be a smart contract for this? I've no idea
           | how.
        
       | brcmthrowaway wrote:
       | I worked nearly 10 years in tech and this is all gobbledygook to
       | me. That's scary.
        
         | jerf wrote:
         | On the blockchain, accounts have a certain amount of currency.
         | 
         | You can issue a command to transfer currency from your account
         | to somebody else's, as that is a primary use case of a
         | cryptocurrency. There was a code path where you could send
         | someone negative amounts of the currency and it would happily
         | pay them a negative amount of currency and charge you a
         | negative amount of currency, thus transferring their account
         | balance to your against their will.
         | 
         | There were several transfer paths and I think not all of them
         | were vulnerable, but only one has to be. There's a bit of
         | indirection that made it somewhat less obvious than my
         | description makes it sound, though it amounts to the same thing
         | in the end.
        
           | schoen wrote:
           | > There was a code path where you could send someone negative
           | amounts of the currency and it would happily pay them a
           | negative amount of currency and charge you a negative amount
           | of currency, thus transferring their account balance to your
           | against their will.
           | 
           | This is a bug I remember from the Apple II game "Taipan" (in
           | which you play an 1800s opium-and-silk trader in East Asia).
           | You could borrow negative amounts of money from a lender who
           | charges extremely high interest. As a result, the lender
           | would quickly end up owing _you_ tremendous sums, without
           | your having to do anything else. Wikipedia mentions this:
           | 
           | > Note: A bug in the original game allows the player to
           | overpay the moneylender, acquiring "negative debt". This
           | "negative debt" will accumulate interest very quickly, and
           | will count towards the player's net worth. As the game's
           | vocabulary of number words ends at "trillion", this can cause
           | the game to display garbage instead of the player's correct
           | net worth. This has been fixed in the online "for browsers"
           | version of the game.
        
           | pennybanks wrote:
           | it really shouldnt be referred to as currency as a whole
           | anymore.
           | 
           | well i guess anything can be a currency but its too
           | misleading even though that was by design.
           | 
           | if its designed to be a stock then should be called so. poker
           | chips? in game currency? money laundering token? reward
           | points? purchase receipt? jpeg? just think it would help
        
             | nailer wrote:
             | 'Token' is the generic term people have settled on.
             | 'Currency' is rare.
             | 
             | A stock would be a 'tokenized equity', in the same way
             | there's 'tokenised real estate', 'tokenised metals',
             | 'tokenised bonds', whatever the real world asset is.
             | 
             | 'In-game currency' is indeed used by gaming people, since
             | that was their term from before blockchain.
        
         | __jonas wrote:
         | Not scary at all! The nice thing about blockchain stuff is that
         | you can safely ignore it and it will have absolutely zero
         | impact on your life now or at any point in the future.
        
           | hoten wrote:
           | Unless you're a security researcher, in which case by
           | ignoring blockchain you may be missing out on some juicy
           | bounties.
        
           | brcmthrowaway wrote:
           | Could suddenly come into the picture like LLMs
        
           | theragra wrote:
           | Not true. My father (71) always was the same, anti-bitcoin
           | etc. Until he needed to pay for online TV (do nt ask, but it
           | was impossible to pay w card)
        
             | Vegenoid wrote:
             | "Online TV" that requires payment in crypto, and doesn't
             | take card... without more info, it's pretty safe to assume
             | that service is not provided legally.
        
       | danielvf wrote:
       | The bounties in crypto are so big because the math is so clear on
       | the cost vs benefits of the bounties. Paying two million to avoid
       | losing a billion is not a bad deal. And there just aren't enough
       | security people yet that market forces have commoditized bounty
       | finding.
       | 
       | Good companies use bounties as yet another security layer - after
       | doing everything else, add a bug bounty!
       | 
       | Almost all crypto bug bounties run through Immunefi. [1] There
       | are lots of > one million dollar bounties. You can see SEI's
       | current bounty page here.[2] The company I work (a different
       | company) for has a one million dollar bounty listed on
       | immunefi.com and median response time of six hours.
       | 
       | [1] https://immunefi.com/bug-bounty/
       | 
       | [2] https://immunefi.com/bug-bounty/sei/
        
         | strictnein wrote:
         | Everything in Crypto (for both meanings of the word) has a
         | built in bug bounty. It's just whether or not the companies
         | want to take part in it.
        
           | j0hnyl wrote:
           | You could say that about anything that is critical.
        
             | wepple wrote:
             | Not really - a bug bounty gives you some type of currency.
             | 
             | Jacking a database and trying to sell it on a DLS or dark
             | web is a massive process.
        
             | tptacek wrote:
             | No, you can't.
        
         | yieldcrv wrote:
         | > And there just aren't enough security people yet that market
         | forces have commoditized bounty finding.
         | 
         | I have the opposite conclusion there, crypto organization
         | sponsored bug bounties are far more accurately valued than Web
         | 2.0's arbitrary adversarial bug bounties, and have attracted
         | tons of developer talent to crypto bug bounties and the crypto
         | ecosystem as a whole
        
           | j0hnyl wrote:
           | Crypto bug bounties require specialized low level knowledge.
           | Web 2 pentesting is akin to a qa checklist. Imo op is right
           | that web2 bounties are commoditized.
        
         | wslh wrote:
         | The problem is that at certain level of TVL you cannot scale
         | your security measures [1]. So, no silver bullet to security in
         | crypto.
         | 
         | [1] https://bittrap.com/resources/defis-growing-pains:-as-tvl-
         | ra...
        
       | malux85 wrote:
       | Did they get paid 2M in USD, or did they get paid 2M in magic-
       | bean tokens, where is so little market depth that selling 30k of
       | it would tank the market, so they will have to bleed it out
       | slowly and hope the price doesn't tank before they exit
        
         | danielvf wrote:
         | [I was wrong, see below]
        
           | usmannk wrote:
           | This one was actually USDC! Regulated, unmagic, dollar-backed
           | beans.
        
             | pennybanks wrote:
             | congrats. take your mama out for a nice dinner. get some
             | flowers as well you know she deserves it
        
             | nobrains wrote:
             | $8,333 monthly on a 5% return. Congrats!
        
         | bangaladore wrote:
         | Magic-bean tokens. I think most on that bug-bounty site are
         | done like that.
        
           | bangaladore wrote:
           | Regarding the downvotes, the company says the below in their
           | Immunefi page. It seems (as the OP responded) that they paid
           | out differently in this case. I am unsure why that happened
           | or if the page is outdated.
           | 
           | "Payouts are handled by the Sei Foundation team directly and
           | are denominated in USD. However, payments are done in SEI."
           | [1]
           | 
           | The other part of my comment is correct according to the
           | various Immunefi listings. Again, I could be incorrect if
           | they do something differently behind closed doors.
           | 
           | [1] https://immunefi.com/bug-bounty/sei/
        
             | zEddSH wrote:
             | Daily volume is > $100m, there's liquidity and the payout
             | is pegged to USD so trade quick and run.
             | 
             | But OP was paid in USD anyway.
        
               | bangaladore wrote:
               | Sure, but we are talking about a token that (almost) had
               | a bug that allowed people to steal from cold-wallets. No
               | amount of fancy words makes that concern go away.
        
             | usmannk wrote:
             | Projects are free to change their terms and the page you
             | link has been updated since I submitted my reports. The
             | maximum was lowered to $1M and payment currency changed
             | from USDC to SEI.
        
       | ohy wrote:
       | For whom it seems surprising, that's actually rather small,
       | considering hacks can end up in an irreversible $100M+ transfer
       | to the malicious party.
       | 
       | You can check Immunefi's Bounty-Board for reference, currently
       | paying up to $15M per find.
       | 
       | Another good source is rekt.news, creating post-mortems about all
       | the DEFI-hacks and an own leaderboard, $624M for #1.
        
         | crest wrote:
         | Sure, but you get to enjoy your bounty payout. Having $2M
         | legally vs. having to become a money launderer?
        
           | usmannk wrote:
           | Right, yeah. I estimated that a savvy attacker might have
           | been able to get out with 50 or even 100m from this, but they
           | would also go to jail. So...
        
             | Sephr wrote:
             | What sort of crime are you envisioning that exploiting this
             | would fall under? It's not always fraud to satisfy a poorly
             | written contract, although that is commonly the case.
        
               | avarun wrote:
               | Everything is wire fraud / securities fraud
        
               | usmannk wrote:
               | Wire fraud, at minimum. This would constitute direct
               | theft. Very similar cases have been tried and convicted
               | several times now.
        
               | htthbjk wrote:
               | Despite what many programmers think, code is not law.
               | 
               | Just like a bug in a smart lock does not allow you to
               | enter a house because "you were allowed in".
        
           | 0cf8612b2e1e wrote:
           | Not so sure it is that clear cut. A few infamous stories of
           | bug bounties not getting paid for even trivial amounts
           | 
           | So it is $2 million x probability payment vs $100 million x
           | probability escape without getting caught.
           | 
           | Even with the threat of non-payment, not sure I could ever
           | feel at ease with a multimillion bounty hanging over my head.
        
             | l33t7332273 wrote:
             | I think there is another factor that some people would pay
             | every penny they have to not go to prison for a meaningful
             | length of time.
        
             | Vegenoid wrote:
             | Yeah, I think stealing that kind of money pretty much
             | guarantees that you'll need to be paranoid for the rest of
             | your life. I wouldn't take that for any amount.
        
               | htthbjk wrote:
               | People keep saying that, but not even one case is
               | documented.
               | 
               | These chains are created by startups with VC money, they
               | are not going to hire hitmans.
        
               | 0cf8612b2e1e wrote:
               | North Korea might. Silk Road went under due to attempting
               | to hire one.
               | 
               | The more likely concern is that someone will sell you out
               | to any of the numerous governments who feel you wronged
               | them. Leading to decades of life in prison.
        
           | Sephr wrote:
           | Taking advantage of bad contracts can be legal depending on
           | various nuanced circumstances. If the potential payout is
           | lucrative, then it makes sense to consult with legal counsel
           | first.
           | 
           | I am not making a judgement about this specific case.
        
             | jaundicedave wrote:
             | tell that to avraham eisenberg
             | https://www.axios.com/2024/04/18/avi-eisenberg-convicted-
             | cry...
        
               | Sephr wrote:
               | That person committed fraud. My point wasn't even about
               | cryptocurrency or DeFi.
               | 
               | Here's a simplified hypothetical example to help you
               | understand the legal nuance: I offer all of my money to
               | the first person that can solve 5x5, and I errantly
               | believe that it's a difficult problem to solve.
        
               | Vegenoid wrote:
               | Can you provide a more real-world example? I don't
               | understand what point you are making, if it isn't about
               | making money via cryptocurrency. When you say "bad
               | contracts", I assume you are talking about smart
               | contracts. Is that not the case?
        
       | bcherny wrote:
       | Cool writeup! This has got to be one of the biggest security
       | bounties ever paid out, right?
        
         | usmannk wrote:
         | It's up there but not singularly so. Twice there have been
         | $10M! You can see the leaderboard where the majority of crypto
         | bounties are represented here
         | (https://immunefi.com/leaderboard/) but you have to search
         | around for the actual reports.
        
       | usmannk wrote:
       | Hey OP here, thanks for posting. Happy to answer any questions.
        
         | teschmitt wrote:
         | What are you doing with all that dough?
        
         | ayewo wrote:
         | 1. For the 2nd issue you found, was the amount you redeemed
         | after being paid really up to $2m USD?
         | 
         | 2. From your other comments elsewhere in this thread, it sounds
         | like you are a full-time bounty hunter, correct?
        
           | usmannk wrote:
           | 1. Yes, they sent me 2,000,000 USDC.
           | 
           | 2. Well, I'm currently not employed full time and I do spend
           | a lot of time bounty hunting. But I mix it in with other
           | things as well, like competitive security reviews on
           | https://sherlock.xyz or https://cantina.xyz and private
           | contracted security reviews.
        
             | ayewo wrote:
             | > .. . and private contracted security reviews.
             | 
             | How you find those? Or this type of work finds you based on
             | your activity on competitive security review sites?
        
               | usmannk wrote:
               | Typically networking. I spent some time working at a
               | reputable firm in this space as well.
               | 
               | One way to do this is to show some chops on the
               | competition sites and then move to one of the organized
               | freelance firms like Spearbit or yAudit. In doing all of
               | these things you'll inevitably meet more people, build a
               | specialty, get some reputation, etc.
        
         | kubb wrote:
         | Congrats on your skills, enjoy not having to work on things you
         | aren't passionate about.
        
         | y-curious wrote:
         | Did you have to specify that it was a critical bug or haggle
         | with them? On the immunefi site, their max bounty is set at $1M
         | but you clearly got 2x that.
        
           | danielvf wrote:
           | The project changed to a 1 million dollar bounty after
           | usmannk's report on May 18th..
           | 
           | There's an unofficial project that tracks bounty programs,
           | you can see the change here: https://github.com/infosec-us-
           | team/Immunefi-Bug-Bounty-Progr...
        
       | rvz wrote:
       | See. These crypto bounties pay as much or even more than big tech
       | bug bounties.
       | 
       | This bounty prize is the equivalent of finding a Chrome zero day
       | bug or an iPhone zero day RCE jailbreak. There are lots of >$1M
       | bug bounties in crypto.
       | 
       | The question is, would you rather target Chrome/Safari or iPhones
       | and find and chain-up 5 - 10 zero days for $1M+ or target crypto
       | projects instead for $2M per project?
       | 
       | You're _really_ missing out.
        
         | yao420 wrote:
         | I'm not a crypto hater (I used to work security at coinbase)
         | but I think that while a chrome or iPhone zeroday might be
         | worth less in bug bounty it's worth more for a security
         | engineers career long term.
         | 
         | Having the iPhone bug and the accompanying conference talk and
         | blog post will allow you get hired by nearly any good security
         | or tech company. No one cares about blockchain bugs except
         | other crypto companies. When I and a bunch of other coinbase
         | engineers were looking for jobs we were looked down at for even
         | working in crypto. And weren't even in the blockchain team!
         | Just regular engineers.
         | 
         | I myself have dedicated a couple of months to testing gnosis
         | and curve that each have $2 million bounties but turned up
         | short. Last year I switched to a ML based fuzzing research and
         | was able to speak at defcon and got crazy offers after
         | publication.
        
           | zEddSH wrote:
           | Can you share more about ML based fuzzing? I do pretty basic
           | fuzzing and that's been pretty useful at work for testing,
           | and am keen to learn about better more modern approaches than
           | mine!
        
             | digital_sawzall wrote:
             | Fuzzing is a massive field now. I don't know what you are
             | doing specifically but this is a collection of good related
             | papers: https://github.com/wcventure/FuzzingPaper.
             | 
             | I would find what is most like your problem domain and dig
             | in :).
        
               | zEddSH wrote:
               | I've been doing the simplest possible things to URL
               | parameters and POST bodies but even that's been
               | effective! Thanks for the link!
        
           | tptacek wrote:
           | Serious Chrome and iPhone bug chains can be worth this much
           | on the market, but the amount of engineering effort that goes
           | into supporting that kind of pricing (across all the buyers,
           | aggregated) is extreme. The subthread that unfolds from this
           | comment is about fuzzing, but _finding_ a vulnerability is a
           | small part of actually selling it on the market.
           | 
           | Vendor bounties for these kinds of vulnerabilities are going
           | to tend to be sharply lower than this crypto bounty, which
           | was for a directly monetizable vulnerability. But there's a
           | lot going into that vendor bounty price point.
        
       | 4hg4ufxhy wrote:
       | I was impressed by the fast payouts. I almost couldn't believe
       | how easy the second one was going to be, but it turned out a bit
       | trickier than I thought. No wonder it flew under the radar.
        
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       (page generated 2024-06-17 23:00 UTC)