KyberSwap Hacker Seeks Civil Negotiation Amid Legal Threats After $46M Crypto Heist
Summary:
The individual who hacked $46 million in cryptocurrency from KyberSwap has asked for reduced hostility from the platform's management and tokenholders. The hacker had previously shown willingness to negotiate but claimed to have received prevalent threats and antagonistic communication. KyberSwap's team initially proposed an agreement where the hacker would return 90% of stolen funds and retain 10%. However, after non-compliance from the hacker, they threatened legal action. They have also announced a bounty program to help catch the offender and recover stolen funds. They've managed to retrieve $4.67 million from the heist so far.
The individual responsible for the $46 million cryptocurrency heist from KyberSwap has issued a plea for less antagonism from the platform's executives and tokenholders, threatening to delay discussions until a more respectful atmosphere prevails. On November 28th, in a blockchain-related message addressed to KyberSwap management, tokenholders, and liquidity providers, the offender declared an intention to propose an agreement with KyberSwap on November 30th. However, they warned that a hostile environment would interrupt this process. The hacker voiced disappointment with largely receiving threats and unfriendly communication from the executive team after expressing an openness to negotiate. Should this hostility persist, they threatened a postponement.
KyberSwap's team, running a decentralized cross-chain exchange, initially proposed a bounty offer inviting the hacker to return 90% of the stolen funds across all attacks. The hacker could keep the remaining 10% in this arrangement. But, when immediate compliance was not manifested, the team proceeded to threaten legal action. The KyberSwap team, following the lack of immediate compliance, contacted law enforcement and cybersecurity experts regarding this case. They warned the offender that legal and cybersecurity forces were on their trail and that accepting the initial offer was in the offender's best interest. Additionally, KyberSwap announced a public bounty program to reward anyone offering information that could aid law enforcement in apprehending the thief and recovering the lost user funds.
The KyberSwap team has been able to retrieve $4.67 million from the $46 million theft as of November 26th. This was recovered from the operators of front-running bots which had syphoned around $5.7 million in cryptocurrency from KyberSwap pools operating on the Polygon and Avalanche networks. The team is yet to respond to the hacker's latest communication on X (formerly Twitter) and seems to be waiting for the proposed agreement from the offender.
A day after the hack on November 22nd, Doug Colkitt, a decentralized finance expert, revealed that an "infinite money glitch" facilitated this meticulously structured smart contract exploit on several networks implementing KyberSwap pools. Networks compromised included Avalanche, Polygon, Ethereum and Layer-2 networks Arbitrum, Optimism, and Base. KyberSwap operates on the Kyber Network, a blockchain-based hub that amasses liquidity across various blockchains, allowing token trades without a third party involved.
Published At
11/29/2023 4:56:52 AM
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