The KyberSwap Attack: $47 Million Compromised Across Multiple Blockchains
An attack on KyberSwap’s Elastic pools earlier this week has resulted in the compromise of $47 million across multiple blockchains, including Arbitrum, Optimism, Ethereum, Polygon, and Base. The perpetrator had previously left a message on the blockchain indicating an interest in negotiating with the team.
KyberSwap’s Proposal: A Deal for the Hacker
In response to the attack, KyberSwap has proposed a deal. In an on-chain message, the team offered a white hat bounty reward equivalent to 10% of the stolen funds (approximately $4.7 million) if the hacker returns the remaining 90% to a specified address by 6 am UTC on November 25. Co-founder Victor Tran warned that if the hacker does not comply, they will “stay on the run.”
Mitigating Consequences and Making Liquidity Providers Whole
The bounty offer is part of KyberSwap’s efforts to mitigate the consequences of the incident and ensure liquidity providers are compensated. Security firm Beosin explained that the vulnerability exploited in the attack was related to tick interval boundaries on Kyber’s liquidity pools. This allowed the hacker to artificially double the liquidity and subsequently drain it.
Hot Take: KyberSwap Takes Bold Steps to Recover Stolen Funds
In a bold move, KyberSwap has put forward a deal for the hacker responsible for compromising $47 million across multiple blockchains. By offering a white hat bounty reward and setting a deadline for returning most of the stolen funds, KyberSwap aims to mitigate the impact of the attack and make liquidity providers whole. This proactive approach demonstrates KyberSwap’s commitment to its users and its determination to recover from this incident. It remains to be seen whether the hacker will accept the deal or continue to evade capture. Nonetheless, KyberSwap’s response sets a precedent for other platforms dealing with similar security breaches.
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