The mastermind behind the assault on decentralized exchange (DEX) KyberSwap has been observed transferring millions in digital assets between different blockchains.
On February 26, blockchain analytics company PeckShield revealed movements from the wallet address of the KyberSwap attacker. According to blockchain data, the hacker moved 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 transferred almost $1 million in stablecoins. A wallet associated with the exploiter moved $826,500 worth of the Dai (DAI) stablecoin to another wallet.
The KyberSwap attack was one of the largest hacks of 2023. On November 23, the DEX informed its community that it had experienced a “security incident” and advised users to withdraw their funds. Initially, it was discovered that around $46 million in digital assets had been stolen. However, it was later revealed that the total amount lost was nearly $49 million.
On that day, the hacker also left a message on the blockchain for the KyberSwap team, stating that negotiations would begin when he was “fully rested.” In response, the KyberSwap team offered the hacker a reward of $4.6 million in exchange for the return of 90% of the stolen funds.
However, the negotiations for the reward took a negative turn when the hacker expressed dissatisfaction with KyberSwap’s approach. On November 29, the hacker issued a threat on the blockchain, stating that negotiations would be further delayed if the KyberSwap team continued to threaten legal action and displayed what the hacker described as unfriendliness.
Eventually, the hacker made an unexpected demand: complete control over the KyberSwap company and all its assets. The hacker also demanded temporary full authority and ownership over KyberDAO, which serves as the governance mechanism for Kyber, along with all related documents. The hacker set a deadline of December 10, 2023, for the company to respond before the “treaty falls through.”
In response to these demands, the KyberSwap team decided to establish a fund for the victims of the hack. On December 2, 2023, the team announced that it would provide grants to those who lost funds in the exploit and have not yet been recovered. The hack also had a significant impact on the company itself, leading to a 50% reduction in its workforce one month after the attack.
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