KyberSwap Recovers $4.67 Million After Security Attack
Decentralized exchange protocol KyberSwap has successfully recovered $4.67 million following a recent security attack that resulted in the loss of nearly $50 million from its concentrated liquidity pools.
The Attack and Exploitation
The attack targeted KyberSwap’s Elastic pools, affecting funds across various blockchains. By manipulating tick interval boundaries, the hacker was able to double the liquidity and drain the pools, resulting in the theft of over $46 million in digital assets.
Negotiations with Front-Running Bot Operators
KyberSwap engaged in negotiations with the operators of front-running bots responsible for extracting approximately $5.7 million in crypto during the hack. The negotiations concluded with the bot operators agreeing to return 90% of the funds to KyberSwap, receiving a 10% bounty as an incentive.
Recovered Funds
The recovered funds include various cryptocurrencies such as axl-wstETH, WETH, wstETH, WMATIC, USDT, USDC, and more.
Negotiations with Hacker Ongoing
Separate from the negotiations with the bot operators, KyberSwap is also in discussions with the main hacker. Progress in these talks appears to be limited at this point.
Aiding Law Enforcement and Cybersecurity Efforts
After recovering a portion of the stolen funds, KyberSwap has committed to supporting law enforcement and cybersecurity in pursuing and recuperating user funds from the hacker.
Hot Take: KyberSwap Recovers Millions After Security Attack
In a successful recovery effort, KyberSwap has managed to retrieve $4.67 million following a recent security attack. The attack targeted the platform’s concentrated liquidity pools and resulted in a significant loss of nearly $50 million. Through negotiations with the operators of front-running bots involved in the hack, KyberSwap was able to reclaim a portion of the stolen funds. However, discussions with the main hacker are still ongoing, with limited progress so far. KyberSwap remains committed to supporting law enforcement and cybersecurity efforts in recovering user funds from the hacker.
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