KyberSwap DEX hacker sends message on chain: Be good, or else
The exploiter behind the $46 million crypto heist at KyberSwap has called for a fight between executives and tokenists, threatening to push the deal until everyone is “more public.”
In a Nov. 28 chain message to KyberSwap executives, token holders, and liquidity providers, the exploit said they plan to release a statement on a potential settlement with KyberSwap on Nov. 30 — but won't if the fight continues.
“I said I was willing to negotiate. In response, I received threats, deadlines and a general lack of friendliness (mostly) from the executive team,” he said.
“Assuming I'm more hostile, we can all reschedule when we feel more public,” he warned.
@KyberNetwork The exploiter sent another message to the group! pic.twitter.com/DnuKUWjFMn
— Officer Notes (@officer_cia) November 28, 2023
The team behind KyberSwap – a cross-chain decentralized exchange – initially proposed a profit-sharing deal where the hacker would return 90% of the money for all exploits, allowing the hacker to keep the remaining 10%.
But after the hacker didn't comply immediately, they followed up with threats to take legal action.
“We have contacted law enforcement and cyber security regarding this matter. We have your fingerprints to track you down,” the KyberSwap team said in a Nov. 25 chain message.
“So before you pursue law enforcement and cyber security, you'd better take the first takeaway from our previous message.”
KyberSwap also told the hacker that they would launch a public bounty program to encourage the arrest of anyone who provides information to support law enforcement and recover users' funds.
The team behind KyberSwap managed to cash out around $5.7 million in crypto from KyberSwap pools on the Polygon and Avalanche networks on November 26, earning $4.67 million out of a $46 million exploit.
The group has yet to respond to the exploiter's latest message on X (formerly Twitter) and is waiting to see the new deal offered by the hacker.
Related: KyberSwap Announces Vulnerability, Tells LPs to Remove ASAP
A day after the November 22 hack, decentralized finance researcher Doug Colquitt said the attacker used an “infinite liquidity problem” to run a “sophisticated and carefully developed smart contract exploit” on multiple networks implementing KyberSwap pools.
Funds from Avalanche, Polygon and Ethereum and layer-2 networks Arbitrum, Optimism and Base were used.
KyberSwap operates on the Kyber Network, a blockchain-based liquidity hub that aggregates liquidity across multiple blockchains and enables the exchange of tokens without intermediaries.
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