Stance on Ransom Payments

Analyzing the industry-wide debate on whether paying hackers is a viable strategy for asset recovery or a dangerous incentive.

The top 3

  1. Why Most Firms Refuse Ransom: Major entities like Blockstream avoid payments to prevent 'moral hazard,' as payouts often attract further targeting by threat actors.
  2. The 'White Hat' Bounty Exception: Some protocols successfully negotiate 'bounty' payments (e.g., Poly Network) instead of 'ransom' to recover funds without legitimizing the theft.
  3. OFAC Compliance Risks: Paying ransoms to sanctioned entities or regions can trigger severe regulatory penalties under US Office of Foreign Assets Control (OFAC) guidelines.

Sources

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