KyberSwap’s $47 Million Hacker to Propose Deal in Upcoming Statement

Last updated: November 29, 2023 01:18 EST
. 1 min read

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The KyberSwap hacker has indicated plans to propose a deal, with a statement expected on November 30.

Following last week’s $47 million exploit of KyberSwap, the hacker has left a message on the network reinstating the inclination to negotiate, with plans to release a detailed statement on a potential agreement tomorrow.

“I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team. That’s ok, I don’t mind,” said the hacker in an Ethereum transaction. “I have prepared a statement concerning our (potential) treaty. I plan to release it on Nov. 30 at Noon UTC, sharp.”

The hacker also left an on-chain message when they first exploited the decentralized crypto exchange on Nov. 23, stating, “Negotiations will start in a few hours when I am fully rested. Thank you.”

KyberSwap Recovered $4.67 Million

Recently the company engaged with the operators of frontrunning bots that withdrew approximately $5.7 million from KyberSwap’s pools on Polygon and Avalanche amid the security breach. Following discussions, these operators consented to return 90% of the extracted user funds, resulting in a recovery of $4.67 million by KyberSwap.

The KyberSwap team has been in contact with the owners of the frontrun bots that extracted about $5.7M* worth of funds from KyberSwap pools on Polygon and Avalanche during the exploit.
We have negotiated with the owners of the frontrun bots to return 90% of the users’ funds taken…

— Kyber Network (@KyberNetwork) November 26, 2023

“Following this recovery of users’ funds from the frontrun bots, we will continue to support law enforcement and cybersecurity on track down and recovery of users’ funds from the perpetrator of the exploit attack,” KyberSwap said.

KyberSwap suggested its users to withdraw funds after the hack last week, while stating that its aggregator was “not impacted” and “operating fully as normal.”

According to Ambient Exchange founder Doug Colkitt, the hacker targeted a specific aspect of KyberSwap’s concentrated liquidity feature, tricking the contract into recognizing more liquidity than was actually present. This exploit essentially allowed for what amounted to an “infinite money glitch.”