- Hacker behind the recent $46 million hack of KyberSwap DEX calls for more civil behavior from KyberSwap team during negotiations on potentially returning stolen funds.
- After hack, KyberSwap proposed bounty deal for hacker to return 90% of funds, threatening legal action. Hacker responded asking for less hostility.
- Separately, KyberSwap has recovered $4.67 million of the stolen funds so far by front-running extraction bots. Situation remains unresolved.
The hacker behind the recent $46 million exploit of the KyberSwap decentralized exchange is calling for more civil behavior from the KyberSwap team during negotiations over potentially returning the stolen funds.
Background on the KyberSwap Hack
KyberSwap, a popular cross-chain DEX, was hacked on November 22, with the attacker exploiting vulnerabilities across multiple blockchain networks where KyberSwap pools are deployed. The hack netted the attacker around $46 million worth of crypto funds. KyberSwap operates as a decentralized liquidity network, aggregating liquidity across blockchains to facilitate token exchanges without an intermediary.
The KyberSwap Team’s Initial Response
Shortly after the hack, the KyberSwap team proposed a bounty deal where the hacker would return 90% of the stolen funds and keep 10%, threatening legal action if the hacker did not comply. The team claimed to have contacted law enforcement and that they could track down the hacker using the digital footprints from the exploits.
The Hacker Calls for More Civility
In an on-chain message on November 28, the hacker said they plan to propose a potential treaty for returning some funds on November 30. However, they warned that continued “threats, deadlines and general unfriendliness” from the KyberSwap executive team could cause them to delay negotiations until everyone can discuss the situation more civilly.
The Hacker’s Message
“I said I was willing to negotiate. In return I have received mostly threats, deadlines and general unfriendliness from the executive team,” the hacker’s message read. “Under the assumption that I am treated with further hostility, we can reschedule for a later date when we all feel more civil.”
The KyberSwap team has not yet publicly responded to the hacker’s latest message. Presumably, they are waiting to see the details of the hacker’s proposed treaty before reacting.
Progress Recovering Funds
Separately, KyberSwap has managed to recover $4.67 million of the stolen funds by November 26th. This came from front-running bots that extracted around $5.7 million from KyberSwap pools on Polygon and Avalanche.
The situation remains unresolved, with the hacker demanding more civil treatment from KyberSwap as a condition for negotiating the return of most of the exploited funds. KyberSwap has not responded to this latest message so far.