In a message on the chain sent to KyberSwap executives on November 28, the hacker behind the $47 million appropriation asked KyberSwap to reduce hostility and threats so that negotiations could take place.
“I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team,” they said.
“Under the assumption that I am treated with further hostility, we can reschedule for a later date, when we all feel more civil,” they warned.
Last week, a cyber attack was carried out against the decentralized exchange (DEX) KyberSwap. In this attack, the liquidity pools of the exchange were drained of a large amount of cryptocurrency. Initial estimates indicate that the damage from the attack amounted to 47 million USD.
This is considered one of the most complex hacks in the history of decentralized finance (DeFi), with the attacker perform a precise series of actions on the chain to exploit the vulnerability.
On November 26, Kyber announced that it would cooperate with cybersecurity agencies after failed negotiations with the hacker to recover the stolen 47 million USD. On its official website, Kyber Network recently confirmed the successful recovery of approximately 4.67 million USD. Kyber Network is currently offering a 10% reward for efforts to return the stolen funds to users.
Doug Colkitt, founder of the Ambient exchange, wrote on X that KyberSwap used a complex and carefully designed smart contract. The platform allows liquidity providers to set minimum and maximum prices they want to buy or sell. However, the hacker used Kyber’s liquidity feature to “trick” the smart contract into thinking the exchange had higher liquidity than it actually did, which Colkitt referred to as an “infinite money exploit.” Colkitt called it “the most complex attack in DeFi history.”
According to Coinmarketcap’s ranking, KyberSwap Elastic is currently ranked 25th in the global cryptocurrency market.