Hacker Plans to Release Statement
The hacker who stole approximately $50 million from KyberSwap, a decentralized exchange protocol, has announced plans to release a statement regarding a potential deal. However, the hacker has demanded that KyberSwap executives adopt a more civil approach in their negotiations. If hostilities continue, the hacker threatens to postpone the statement and negotiations.
Hacker Sends Message on the Blockchain
In an Ethereum transaction on November 28th, the hacker encoded an on-chain message stating their willingness to negotiate. However, they expressed dissatisfaction with the hostile behavior of the executive team. The hacker suggested rescheduling negotiations for a later date if treated with further hostility.
Negotiations and Legal Action Threats
KyberSwap initially proposed a white hat bounty deal, offering the hacker 10% of the stolen funds in exchange for returning the remaining 90%. When the hacker did not respond, KyberSwap threatened legal action and initiated a public bounty program to track down the hacker and recover the funds.
Partial Fund Recovery
KyberSwap has managed to recover $4.67 million of the stolen funds with the help of front-running bot operators. These operators extracted around $5.7 million worth of cryptocurrency from KyberSwap pools on Avalanche and Polygon networks.
The KyberSwap Exploit
A week prior to the announcement, KyberSwap experienced a hack where $47 million was drained from its Elastic Pools liquidity solution. The protocol advised users to withdraw their funds while investigating the attack and engaged in communication with the hacker. The hack exploited smart contracts across various networks including Polygon, Avalanche, Ethereum, Arbitrum, Optimism, and Base.
Hot Take: Hacker Demands Civil Negotiations
The hacker responsible for the KyberSwap hack has demanded a more civil approach from the executive team during negotiations. Threatening to postpone discussions, the hacker plans to release a statement addressing a potential deal. KyberSwap has recovered some of the stolen funds with the help of bot operators but awaits further communication from the hacker. The hack exposed vulnerabilities in the protocol’s smart contracts, leading to funds being drained across multiple networks.
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