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Hacker Moves Millions in Digital Assets from KyberSwap

The perpetrator of the assault on the decentralised exchange (DEX) KyberSwap has been observed shifting millions in digital assets from one blockchain to another.

On the 26th of February, the blockchain analytics firm PeckShield disclosed movements from the wallet address of the KyberSwap attacker.

According to blockchain data, the hacker transferred 798.8 Ether (ETH), valued at nearly £2.5 million, from Arbitrum to the Ethereum network.

In addition to the £2.5 million, the hacker also relocated almost one million dollars in stablecoins. A wallet associated with the exploiter sent £826,500 of the Dai (DAI) stablecoin to another wallet.

The KyberSwap breach stood out as one of the major breaches of 2023. On the 23rd of November, the DEX notified its community that it had encountered a “security incident” and advised its users to withdraw their funds.

It was initially revealed that around £46 million in digital assets were siphoned off during the breach. However, it later emerged that the total amount lost nearly reached £49 million.

On that day, the hacker also left a message on-chain for the KyberSwap team, stating that negotiations would commence when he was “fully rested.”

In response, the KyberSwap team proposed a bounty of £4.6 million in return for the return of 90% of the pilfered funds.

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However, the bounty negotiations took a sour turn when the hacker began to express discontent with KyberSwap’s approach.

On the 29th of November, the hacker posted a message on-chain threatening to prolong negotiations further if the KyberSwap team persisted with their threats of legal action and what the hacker described as unfriendliness.

Subsequently, the hacker made an unexpected demand, seeking total control over the KyberSwap company and all of its assets.

The hacker also insisted on temporary full authority and ownership over KyberDAO, which serves as the governance mechanism for Kyber, along with all documents related to Kyber.

The company was given until the 10th of December, 2023, to decide before the “treaty falls through.”

In response to the hacker’s demands, the KyberSwap team opted to initiate treasury grants for the victims of the breach.

On the 2nd of December, 2023, the team announced it would provide a grant to those who lost funds in the breach and have not been compensated.

The breach also had a profound impact on the company, leading to a 50% reduction in its workforce a month after the incident.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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