The $46 Million Crypto Theft against KyberSwap: Negotiations in Jeopardy

The $46 Million Crypto Theft against KyberSwap: Negotiations in Jeopardy

In a recent turn of events, the exploiter responsible for the $46 million crypto theft against KyberSwap has issued a warning, demanding a more civil approach from KyberSwap executives, tokenholders, and liquidity providers during negotiations. The exploiter has threatened to postpone discussions until a more amicable atmosphere is established. This article delves into the details of the situation and explores the potential implications for both parties involved.

The exploiter, through an on-chain message on November 28, notified KyberSwap executives, tokenholders, and liquidity providers of their intentions to release a statement regarding a possible treaty with KyberSwap on November 30. However, this would only happen if hostilities subsided. The exploiter expressed dissatisfaction with the executive team’s response, citing threats, deadlines, and an overall unfriendly tone. In light of this, they warned that negotiations would be rescheduled for a later date when a more civil environment prevailed.

Initially, the team behind KyberSwap proposed a bounty deal, suggesting that the hacker should return 90% of the stolen funds while retaining 10%. However, they soon threatened legal action when the hacker failed to comply immediately. KyberSwap reached out to law enforcement and cybersecurity experts, assuring the hacker that they had the means to track them and urging them to accept the first offer. Additionally, KyberSwap announced their intention to launch a public bounty program, providing incentives for information leading to the apprehension of the attacker and the recovery of user funds.

Remarkably, KyberSwap has already managed to recover $4.67 million from the $46 million exploit. The funds were retrieved from operators of front-running bots who had extracted approximately $5.7 million in crypto from KyberSwap pools on the Polygon and Avalanche networks. While the team has not yet responded to the exploiter’s latest message, they are anticipated to evaluate the proposed treaty before further engagement.

Decentralized finance expert Doug Colkitt described the hacker’s modus operandi as an “infinite money glitch.” The attacker skillfully exploited a carefully engineered smart contract across multiple networks, including Avalanche, Polygon, Ethereum, Arbitrum, Optimism, and Base, all of which implement KyberSwap pools. KyberSwap operates on the Kyber Network, a blockchain-based liquidity hub that facilitates token exchange without the need for intermediaries.

The ongoing negotiations between KyberSwap and the exploiter of the $46 million crypto theft remain in a precarious state. The exploiter’s demand for a more civil environment highlights the tense atmosphere surrounding these discussions. KyberSwap’s recovery efforts have yielded promising results thus far, but the outcome of the negotiation process will ultimately determine the fate of the remaining stolen funds. As both parties navigate this intricate situation, the crypto community eagerly awaits further developments and the potential resolution of this high-profile incident.

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