The Hacker Demands Negotiations Amid Hostilities
The hacker responsible for the $46 million crypto theft against KyberSwap has urged the company’s executives and tokenholders to ease hostilities, threatening to delay negotiations until a more civil environment is established. In an on-chain message addressed to KyberSwap executives, tokenholders, and liquidity providers, the hacker stated their intention to release a statement regarding a potential treaty with KyberSwap on November 30, but only if the hostile behavior ceases. The hacker expressed dissatisfaction with the executive team’s response, claiming to have received threats and unfriendly treatment. They warned that negotiations could be rescheduled if further hostility persists.
KyberSwap’s Initial Bounty Deal and Legal Threats
KyberSwap initially proposed a bounty deal to the hacker, offering them to return 90% of the funds obtained through the exploits while allowing them to keep the remaining 10%. However, when the hacker did not comply immediately, KyberSwap threatened legal action and informed them of their intention to involve law enforcement and cybersecurity experts. They emphasized that they possess the means to track down the hacker. Additionally, KyberSwap announced plans for a public bounty program that would incentivize individuals providing information leading to the hacker’s arrest and the recovery of user funds.
Recovery Efforts and Response from KyberSwap
Following the exploit on November 26, KyberSwap managed to recover $4.67 million from operators of front-running bots involved in extracting approximately $5.7 million in crypto from KyberSwap pools on Polygon and Avalanche networks. As of now, KyberSwap has not responded to the latest message from the hacker and is likely awaiting their proposed treaty. Decentralized finance expert Doug Colkitt described the attack as an “infinite money glitch” and a meticulously planned smart contract exploit across various networks utilizing KyberSwap pools. KyberSwap operates on the Kyber Network, a blockchain-based liquidity hub that facilitates token exchange without intermediaries.
Hot Take: Negotiations Hang in the Balance
The ongoing hostilities between the hacker and KyberSwap have put negotiations at risk. The hacker’s demand for a more civil environment has added uncertainty to the potential treaty between the two parties. KyberSwap’s initial proposal of a bounty deal and subsequent legal threats demonstrate their determination to recover the stolen funds and bring the hacker to justice. However, the hacker’s response suggests dissatisfaction with the executive team’s approach, which may further complicate the negotiation process. As both sides await the proposed treaty, it remains to be seen whether a resolution can be reached amidst these tensions.
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