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February 26, 2024KyberSwap hacker bridges $2.5M in stolen funds to Ethereum
The hacker responsible for the attack on decentralized exchange (DEX) KyberSwap has been observed transferring millions in digital assets across different blockchains. According to blockchain analytics firm PeckShield, the hacker moved significant amounts of Ether and stablecoins.
Asset Movements:
On Feb. 26, the hacker transferred 798.8 Ether, valued at nearly $2.5 million, from Arbitrum to the Ethereum network.
Additionally, the hacker moved approximately one million dollars in stablecoins, with $826,500 of Dai stablecoin being transferred to another wallet.
Background on KyberSwap Attack:
The KyberSwap attack, one of the largest hacks of 2023, occurred on Nov. 23. The DEX disclosed a “security incident” and advised users to withdraw their funds, revealing that around $46 million in digital assets were taken during the exploit. Subsequently, it was found that the total loss was close to $49 million.
The hacker left an on-chain message to the KyberSwap team, suggesting negotiations would begin when they were “fully rested.” KyberSwap offered a $4.6 million bounty for the return of 90% of the stolen funds, but negotiations turned sour when the hacker expressed dissatisfaction with KyberSwap’s approach.
Eventually, the hacker demanded total control over KyberSwap and its assets, including temporary full authority and ownership over KyberDAO, with a deadline of Dec. 10, 2023, for a decision.
In response, KyberSwap decided to launch treasury grants for hack victims on Dec. 2, 2023, extending grants to those who lost funds in the exploit and had not been recovered. The company also underwent workforce reductions, cutting half of its staff following the hack’s aftermath.
