2023 KyberSwap Attack: Hacker Transfers $2.5M to Ethereum 😱

2023 KyberSwap Attack: Hacker Transfers $2.5M to Ethereum 😱


The Hacker Behind the 2023 KyberSwap Attack Moves $2.5 Million from Arbitrum to Ethereum

A recent report from blockchain analytics firm PeckShield has revealed that the hacker responsible for the November 2023 attack on decentralized exchange KyberSwap has been observed moving nearly $2.5 million in cryptocurrency. The hacker transferred 798.8 Ether, worth approximately $2.49 million, from Arbitrum to the Ethereum blockchain.

KyberSwap Attack: A Recap

The KyberSwap attack, which took place on November 23, 2023, was one of the most significant hacks of that year. After discovering the attack, KyberSwap immediately informed its community about the security incident and advised users to withdraw their funds. Initially, it was estimated that around $46 million worth of digital assets were stolen, but subsequent investigations revealed that the actual sum was closer to $49 million.

The hack gained further attention when the hacker left a message on-chain for the KyberSwap team, indicating their willingness to negotiate once they had fully rested. In response, KyberSwap offered a $4.6 million bounty to the hacker in exchange for recovering 90% of the stolen funds.

However, negotiations took a turn for the worse when the hacker threatened to delay discussions if KyberSwap continued with legal threats and an allegedly unfriendly approach. The hacker then changed their demands, requesting complete control over KyberSwap and its assets, including temporary full authority and ownership of KyberDAO and all associated documents.

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KyberSwap’s Efforts to Return Funds

In response to these demands, KyberSwap decided to initiate treasury grants for victims of the hack. On December 2, they announced grants for individuals who suffered losses in the exploit and had not yet recovered their funds.

The distribution of treasury grants is still ongoing. Recently, KyberSwap announced that registration for the treasury grant program is now open for users affected by third-party events on DappOS, Pendle, Magpie, and Equilibria, as well as users with addresses impacted by Multisig/AA/Safe/Other Contracts. They also extended the deadline for normal cases to accommodate those who missed the January 31 cutoff.

Following the hack, KyberSwap experienced significant losses and had to downsize its workforce by 50% within a month of the incident.

Hot Take: The Ongoing Aftermath

The recent movement of $2.5 million in cryptocurrency by the hacker responsible for the KyberSwap attack highlights the ongoing repercussions of such security breaches. As a crypto enthusiast, it is crucial to stay informed about these incidents and their impact on the industry. Here are some key takeaways:

  • The hacker has transferred 798.8 Ether worth approximately $2.49 million from Arbitrum to Ethereum.
  • KyberSwap suffered losses of around $49 million in the November 2023 attack.
  • The company responded by initiating treasury grants for victims of the hack.
  • Treasury grant distribution is still underway, with registration open for affected users.
  • The hack led to a significant downsizing of KyberSwap’s workforce.
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By understanding the consequences of security breaches like the KyberSwap attack, you can better protect your own crypto assets and contribute to a safer crypto ecosystem.

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Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension.