The individual responsible for the cyber attack on decentralized exchange KyberSwap has been observed transferring millions of digital assets across different blockchains.
On February 26, blockchain analytics firm PeckShield detected movement from the wallet address belonging to the KyberSwap attacker. According to blockchain data, the hacker moved 798.8 Ether (ETH), equivalent to 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 connected to the perpetrator moved $826,500 worth of the Dai (DAI) stablecoin to another wallet.
The KyberSwap attack was one of the largest hacking incidents 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 approximately $46 million in digital assets had been stolen during the attack. However, it was later revealed that the total amount lost was nearly $49 million.
On that same day, the hacker left a message on the blockchain for the KyberSwap team, stating that negotiations would commence once the hacker was fully rested. In response, KyberSwap offered the attacker a bounty of $4.6 million in exchange for the return of 90% of the stolen funds.
However, the negotiation process 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 their threats of legal action and what the hacker perceived as unfriendly behavior.
Eventually, the hacker surprised everyone by demanding complete control over the KyberSwap company and all its assets. The hacker also requested temporary full authority and ownership over KyberDAO, which serves as the governance mechanism for Kyber, as well as all related documents. The hacker set a deadline of December 10, 2023, for the company to make a decision before the “treaty falls through.”
In response to the hacker’s demands, the KyberSwap team decided to establish treasury grants for the victims of the hack. On December 2, 2023, the team announced that it would provide grants to those who had lost funds in the attack and had not yet been recovered. The hack had a significant impact on the company, leading to a 50% reduction in its workforce one month after the incident.
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