Kyber Director Demands Executive Control and Asset Surrender in Bold Negotiation Terms

Last updated: November 29, 2023 23:39 EST
. 2 min read

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Kyber Director demands company takeover and assets after the attack. *Image by Катерина Євтехова, Adobe Stock.*

The anonymous attacker behind the recent $47 million exploit of the decentralized crypto exchange KyberSwap has outlined bold demands in proposed negotiation terms made public on November 30. The self-proclaimed “Kyber Director” is seeking complete control of KyberSwap’s operations and assets to remedy the losses from the November 23 breach.

Kyber Director Seeks Broad Authority Over KyberSwap Governance and Assets

According to the statement shared via Ethereum transaction, Kyber Director is demanding full executive authority over KyberSwap as a company, including temporary ownership of the governance mechanism to enact protocol changes. The exploiter also called for all documents and data related to KyberSwap’s structure, finances, and intellectual property to be handed over.

The Kybeer hacker is schizo AF holy shit pic.twitter.com/eV7tgsjx5d

— yieldfarming (@delucinator) November 30, 2023

In addition, Kyber Director requested the surrender of all on-chain and off-chain assets tied to the company, encompassing equity, tokens, partnerships, websites, social channels, and any other properties associated with the decentralized exchange.

Employee Benefits and Token Holder Rebates Offered in Return

In return for meeting these demands by December 10, Kyber Director pledged certain concessions to employees, investors, and liquidity providers of KyberSwap. Executives would receive a buyout at a fair valuation, while other employees could expect doubled salaries under the new leadership.

Meanwhile, token holders would benefit from a full protocol overhaul to improve KyberSwap’s market standing. The exploiter also promised a 50% rebate on recent losses to liquidity providers stemming from the attack. The deal risks collapse if law enforcement intervenes, however.

Kyberswap hacker saw the OpenAI coup and said hold my beer

— loomdart – (FTX 2.0 Advocate) (@loomdart) November 30, 2023

“This is my best offer. This is my only offer. I require my demands to be met by December 10, otherwise, the treaty falls through,” Kyber Director stated in the negotiations. “Additionally, should I be contacted by agents from any of the 206 sovereignties, concerning the trades I placed on Kyber, the treaty falls through. In this case, rebates will total to exactly 0.”

The bold proposal was released after KyberSwap recovered approximately $4.67 million from frontrunning bots that capitalized on the breach. The decentralized exchange said it continues collaborating with authorities to track down more exploited assets.

While risky, the proposed treaty could mitigate the far-reaching effects of last week’s exploit. Yet handing over full control to the anonymous attacker presents deep governance concerns for a prominent DeFi protocol.

KyberSwap now faces a complex decision between recovering additional funds and setting a dangerous precedent of bowing to an exploiter’s demands. With the December 10 deadline looming, the community awaits KyberSwap’s official response to the brazen negotiation attempt.