Markets News Report
December 01, 2023

KyberSwap Hacker Demands Extraordinary Control for $47 Million Theft Recovery

KyberSwap Hacker Demands Unprecedented Control in Exchange for $47 Million Recovery

The hacker behind the $47 million theft from KyberSwap, a decentralized exchange protocol (DEX), has issued an extraordinary demand. The attacker demands complete control over the company and its governance mechanisms. Additionally, they seek access to all company information and assets.

This extraordinary request was communicated through an on-chain message. In this message, the hacker specified their conditions, which include assuming control of KyberDAO, the project’s governance system, and acquiring comprehensive details about the company’s operations and financials.

The hacker’s ultimatum includes not only administrative control but also the possession of all on-chain and off-chain assets. This encompasses shares, equity, various tokens, websites, servers, passwords, and all intellectual property associated with KyberSwap.

Source: Etherscan

Hacker’s On-Chain Promises

In his message, the hacker depicted the takeover as advantageous for KyberSwap’s token holders and investors. They committed to a complete overhaul of the platform. Their aspiration was to elevate KyberSwap beyond its current ranking as the 7th most popular DEX.

Under their direction, they planned to transform KyberSwap into a new, innovative cryptographic project. Additionally, the hacker offered a 50% rebate to liquidity providers who incurred losses in the recent exploit, terming this compensation as “more than you deserve.”

The deadline set for these demands is December 10, with the hacker warning that any contact from law enforcement agencies would nullify the deal and eliminate any rebates. They also hinted at a desire to prevent the downfall of KyberSwap, one of the pioneering DeFi protocols.

KyberSwap Team’s Response

In response to this bizarre situation, Victor Tran, co-founder of KyberSwap, expressed his commitment to the platform’s users and promised a forthcoming message.

This incident comes a week after the initial exploit, which saw $47 million drained from KyberSwap’s Elastic Pools liquidity solution. In the aftermath, KyberSwap urged users to withdraw funds and offered a 10% bounty for information leading to the recovery of the stolen assets.

Separately, the platform team managed to reclaim $4.7 million of the lost funds. The hacker is also believed to be connected to a previous $16 million attack on Indexed Finance in 2021.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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