In a plot twist worthy of a thriller, the KyberSwap $50 million elastic pools exploit has taken an unexpected turn. The elusive hacker, known for dropping messages on the blockchain, initially left a note for the KyberSwap team, signaling a willingness to talk after taking a break. However, things got tense when the hacker felt the KyberSwap team was being unfriendly and hostile.
In a follow-up message, the hacker threatened to delay the negotiation set for November 30th, citing the team’s perceived “threats, deadlines, and general unfriendliness.”
The Deal Dilemma: Where Does KyberSwap Stand?
KyberSwap initially suggested a deal where the hacker would give back 90% of the stolen funds in exchange for a 10% reward. When the hacker didn’t act quickly, the situation escalated. The KyberSwap team warned of legal action, involving law enforcement and cybersecurity experts.
They stressed that the hacker’s digital footprints were traceable and urged them to accept the deal to avoid legal trouble. KyberSwap also announced a public bounty program to encourage tips leading to the hacker’s capture and fund recovery.
Fighting for Justice
In a recent update, KyberSwap revealed they reached out to the owners of front-run bots that siphoned about $5.7 million from KyberSwap pools on Polygon and Avalanche. This effort resulted in the return of around $4.67 million worth of funds to the KyberSwap Deployer on Polygon.
The KyberSwap team has been in contact with the owners of the frontrun bots that extracted about $5.7M* worth of funds from KyberSwap pools on Polygon and Avalanche during the exploit.
We have negotiated with the owners of the frontrun bots to return 90% of the users’ funds taken…— Kyber Network (@KyberNetwork) November 26, 2023
Expert Insights
Doug Colkitt, founder of Ambient Finance, broke down the hack, pointing out its complexity. He noted that the exploit needed a precise sequence of on-chain actions, making it one of the most intricate smart contract exploits in DeFi history.
Well…What’s Next?
As the negotiation deadline approaches, the crypto community is on the edge of their seats, eagerly anticipating the resolution of this high-stakes showdown. The outcome of these negotiations holds significant implications for the future of KyberSwap and the broader DeFi landscape.
Stay tuned for more updates!
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Sohrab Khawas
Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he’s trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he’s not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
