KyberSwap Hacker is Back With More Demands

YEREVAN (CoinChapter.com) – The KyberSwap hacker, i.e. the exploiter who wiped $45 million off the decentralized exchange (DEX), contacted the team again on Nov. 30. This time they laid out their demands to the team.

The demands include complete executive control over Kyber, temporary authority over KyberDAO, access to all company documents, and surrender of all Kyber assets. In return, the author promises fair valuation for executives, double salaries for employees, and rebates for liquidity providers.

The deadline to meet these demands is December 10, and the letter also mentions a contingency related to being contacted by agents from any of the 206 sovereignties. The sign-off includes a contact detail on Telegram. The letter emphasizes the importance of Kyber in the DeFi space and the author’s intention to prevent its downfall.

KyberSwap Hacker Back With a Message

Note: On Nov. 23, an unidentified hacker stole more than $45 million from KyberSwap. He then contacted the team, saying the negotiations would start when they were “well rested.” The breach affected multiple cross-chain deployments of KyberSwap, including over $20 million on Arbitrum, $15 million from Optimism, and $7 million from Ethereum. The funds stolen primarily included Ether (ETH), Wrapped Ether (wETH), and USDC​​.

Here is the culprit’s new hilarious message to the team on Nov 29, warning them to “be nice.”

I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team. Under the assumption that I am treated with further hostility, we can reschedule for a later date, when we all feel more civil.

they said.

The Team Responded to The Threats

While the KyberSwap hacker complains of the “general unfriendliness” of the team, the latter proposed a compromise to the hacker: return 90% of the stolen funds from various exploits, and keep the remaining 10% (worth over $4.5 million). However, when the hacker failed to respond promptly, KyberSwap escalated their approach, threatening legal action.

In an on-chain message dated Nov. 25, the KyberSwap team revealed that they had contacted law enforcement and cybersecurity experts. The team also claimed they had sufficient evidence to track the hacker. They advised the hacker to accept their initial proposal to avoid potential legal consequences.

Moreover, KyberSwap announced the launch of a public bounty program. This program aims to encourage individuals to provide information that could help law enforcement apprehend the hacker and recover the stolen assets.

On Nov. 26, the KyberSwap team successfully reclaimed $4.67 million of the total $46 million stolen by targeting front-running bot operators who had siphoned off approximately $5.7 million in cryptocurrencies from KyberSwap pools on the Polygon and Avalanche networks.

To date, the KyberSwap team has not yet replied to the latest communication from the hacker on X (or Twitter, if you prefer). Possibly, they are waiting to review the new agreement proposed by the hacker.