KyberSwap Proposes 10% Bounty Following $50 Mln Hack
KyberSwap, a cryptocurrency exchange that was hacked on November 22, currently negotiating a bounty offer with the hacker. The decentralized autonomous organization (DAO) overseeing the KyberSwap decentralized exchange (DEX) has initiated negotiations with the attacker who compromised with a staggering $50 million on November 22.
The DAO, through a message on the exploited wallet address, expressed a desire to negotiate, acknowledging the sophistication of the hack and proposing a unique resolution.
KyberSwap To Initiate With a 10% Bounty Offer
KyberSwap’s message to the attacker conveyed a bold proposal. While recognizing the complexity of the hack, the team has labeled it as “high EV” (expected value), a term in the crypto space denoting a strategic move.
The DAO offered a bounty equivalent to 10% of the funds taken from users as an incentive for the safe return of all the users’ funds.
Cutting to the chase, the DAO presented an ultimatum to the attacker to return 90% of the stolen funds to the specified crypto wallet address by 6 am UTC on November 25 or remain on the run.
In a nod to the broader crypto community, the DAO proposed setting aside the funds for the bounty to be directly distributed to affected users.
The team has also approached the hacker to contact them personally if they want to settle the bid anonymously. The KyberSwap team has included an email address on the message for private communications.
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Chase For The Hacker
The exploiter has still not responded to the bounty proposal and has been inactive since Nov 22. The last message he dropped stated that he was resting and would start negotiations a few hours later.
The Ambient exchange’s founder, Doug Colkitt, came to X (previously Twitter) to explain how the attacker carried out “the most complex and carefully engineered smart contract exploit he has ever seen.
According to Colkitt’s investigation, the attacker took advantage of an “infinite money glitch” and KyberSwap’s unique liquidity implementation. He explained how they duped the contract into assuming it had more liquidity than it had.
The hacker targeted KyberSwap’s liquidity pools (LPs). Before the attack, the DEX had a total value locked (TVL) of roughly $80 million. It currently only has $7.78 million.
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