Decentralized exchange KyberSwap offers a hacker $4.6 million for the return of the stolen $46 million. It turns out that the hacker can earn money from his cybercrime, provided that he returns the stolen assets. The ultimatum issued by KyberSwap lasts until 6 a.m. on November 25. Interestingly, it is the hacker himself who negotiates a settlement and the return of the stolen cryptocurrencies, demanding something in return.
Sophisticated attack that ended with the theft of $46 million in digital assets
The attack on the KyberSwap cryptocurrency exchange took place on November 22, 2023. The hacker initially attempted to withdraw $20 million in Wrapped Ether (wETH), $7 billion in Wrapped Lido-staker Ether (wstETH), and $4 million in Artibrum (ARB). He then turned his attention to other chains, such as Polygon and Base. The scale of the attack was so large that the exchange suspended its operations and advised users to withdraw their funds.
The situation was analyzed for the next few hours by the exchange’s IT team and a dedicated expert in decentralized finance. His analysis showed that the hacker used a sophisticated method to withdraw digital assets. According to him, it was a complex and carefully designed smart contract exploit. The attacker used the same digital picklock on different chains on the KyberSwap exchange, which allowed him to steal as much as 46 million.
KyberSwap’s Ultimatum Ends a Nightmare Week for the Exchange
When the exchange was already certain of its defeat, a light appeared at the end of the crypto tunnel. The day after the theft, the hacker left an on-chain note that he would be ready to negotiate in a few hours, once he had a rest. The exchange management quickly responded and offered a settlement. KyberSwap wants 90% of the stolen funds back in exchange for 10% of the reward. KyberSwap informed the hacker that the time to think it over would end on November 25 at 6 AM UTC. Moreover, the team is open to further communication and discussion with the hacker via email.
This situation clearly shows that cryptocurrency exchanges have to deal with increasingly sophisticated methods of stealing digital assets. Improving security systems is therefore crucial. Although offering a reward to a hacker who stole funds from an exchange seems irrational, it is actually quite a logical method. Interestingly, such hackers often go to the bright side of the web and later work in cybersecurity, because they know perfectly well how to hack the fintech industry. A great example of this is the recently deceased Kevin Mitnick.
