The individual responsible for the $46 million cryptocurrency heist targeting KyberSwap has issued an ultimatum to the company’s executives and tokenholders, insisting on a reduction in hostile actions. The perpetrator has threatened to delay negotiations until a more amicable atmosphere is established.
In a message sent directly through blockchain to KyberSwap’s executives, tokenholders, and liquidity providers on Nov. 28, the hacker indicated plans to issue a statement about a possible agreement with KyberSwap on Nov. 30. However, they emphasized that this would only occur if the current hostilities ceased.
The exploiter expressed frustration with the response they had received since expressing willingness to negotiate, citing threats, deadlines, and a generally hostile attitude from KyberSwap’s executive team. They cautioned that if this hostility persisted, discussions could be postponed until a later, more cordial date.
KyberSwap, a decentralized exchange operating across multiple blockchains, initially proposed a bounty arrangement. This deal involved the hacker returning 90% of the stolen funds from all related exploits, while being allowed to retain the remaining 10%. However, when the hacker did not immediately comply, KyberSwap threatened legal action.
On Nov. 25, KyberSwap communicated via blockchain, informing the hacker of their contact with law enforcement and cybersecurity experts and warning of the consequences of not accepting the initial offer. They also mentioned the possibility of launching a public bounty program to encourage information leading to the hacker’s arrest and the recovery of stolen user funds.
KyberSwap has already successfully recovered $4.67 million of the stolen $46 million. This recovery was made possible on Nov. 26 by intercepting funds from front-running bots, which had extracted approximately $5.7 million in cryptocurrency from KyberSwap pools on the Polygon and Avalanche networks.
KyberSwap has not publicly responded to the hacker’s most recent communication on X (formerly known as Twitter) and seems to be awaiting the proposed new agreement from the hacker.
Following the Nov. 22 hack, decentralized finance expert Doug Colkitt analyzed the incident, describing it as a “complex and carefully engineered smart contract exploit” utilizing an “infinite money glitch” across various networks hosting KyberSwap pools. The exploited funds originated from multiple networks, including Avalanche, Polygon, Ethereum, and layer-2 networks like Arbitrum, Optimism, and Base.
KyberSwap operates within the Kyber Network, a blockchain-based liquidity hub that consolidates liquidity from different blockchains, facilitating token exchanges without intermediaries.
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