In a bold move, the mastermind behind the recent $46 million crypto heist involving KyberSwap has issued a demand for a change in the tone of negotiations. The anonymous exploiter sent an on-chain message on November 28th to KyberSwap executives, tokenholders, and liquidity providers, stating that they would only release a statement regarding a potential treaty on November 30th if everyone involved can maintain a more civil approach. The message highlighted the unfavorable treatment received from the executive team, who responded to the initial offer with threats and deadlines. As a result, the exploiter warned that negotiations may be postponed until a more harmonious atmosphere can be established.
KyberSwap, a cross-chain decentralized exchange, initially proposed a bounty deal to the hacker, offering to return 90% of the stolen funds in exchange for keeping the remaining 10%. However, when the hacker did not comply immediately, KyberSwap threatened to pursue legal action. The team promptly reached out to law enforcement and cybersecurity experts, emphasizing their ability to track down the hacker. In a bid to incentivize cooperation, KyberSwap also announced the initiation of a public bounty program to reward individuals who provide information leading to the arrest of the hacker and the recovery of user funds.
Despite the ongoing negotiations, KyberSwap managed to recover a portion of the stolen funds. On November 26th, they successfully retrieved $4.67 million from operators of front-running bots. These bots had exploited vulnerabilities in the KyberSwap pools on the Polygon and Avalanche networks, managing to extract approximately $5.7 million in crypto. While the KyberSwap team has not formally responded to the exploiter’s latest message, it is presumed that they are awaiting the presentation of the hacker’s proposed new treaty.
Decentralized finance expert Doug Colkitt shed light on the intricacies of the attack. Colkitt described the incident as an “infinite money glitch” that enabled the hacker to execute a highly complex and carefully engineered smart contract exploit across multiple networks. The hack targeted KyberSwap pools on Avalanche, Polygon, Ethereum, and various layer-2 networks such as Arbitrum, Optimism, and Base. KyberSwap operates on the Kyber Network, a blockchain-based liquidity hub that facilitates token exchange across different blockchains without requiring an intermediary.
As the negotiations unfold, the fate of the remaining stolen funds hangs in the balance. KyberSwap and the exploiter must find a common ground that accounts for the interests and concerns of both parties. The resolution of this high-stakes situation will not only determine the recovery of the funds but also serve as a testament to the effectiveness of security measures within the crypto space.
The demand for a change in the negotiation approach by the exploiter has added a new twist to the tale of the $46 million crypto theft. As tensions rise, the crypto community eagerly awaits the outcome of these negotiations and the potential resolution of this significant breach.
