Immunefi launches blockchain arbitration system for bug bounties

Immunefi, a prominent blockchain security firm, has introduced the world’s first legally binding blockchain arbitration system specifically designed for bug bounties.

This innovative platform aims to enhance trust and legal enforceability within the cybersecurity industry.

Announced on January 21, 2025, the Immunefi Arbitration system is set to transform how bug bounty programs operate by providing a structured and impartial method for resolving disputes between developers and projects.

Traditionally, these programs relied heavily on trust, but the new system legally obligates projects to fulfill their bounty payments.

The arbitration process will assess vulnerability disclosures and determine appropriate rewards based on established guidelines.

It is modeled after the London Chamber of Arbitration and Mediation, ensuring that rulings are recognised and enforceable by international courts.

Mitchell Amador, founder and CEO of Immunefi, emphasised the critical role of bug bounty programs in safeguarding projects from significant vulnerabilities.

“We’ve clearly seen how crucial bug bounty programs have been in saving projects from catastrophic vulnerabilities,” he stated.

The rules governing this arbitration system were developed in collaboration with Greenberg Traurig, a well-established legal firm.

The framework benefits from the New York Convention, which allows for enforceability in 172 countries.

This launch represents a significant step towards integrating blockchain technology with traditional legal systems.

Amador noted that while the focus is currently on cybersecurity, the arbitration model could be adapted for various legal disputes within blockchain environments.

As Immunefi continues to lead in crowdsourced cybersecurity, protecting over $190 billion in user funds, the introduction of this arbitration system could pave the way for more robust legal frameworks in the blockchain sector.

The platform currently offers more than $181 million in bug bounties to ethical hackers, further incentivising participation in securing digital assets.