Recent findings by PeckShield analysts shed light on a significant movement of stolen assets from the decentralized exchange KyberSwap, indicating a sophisticated operation by the hacker involved.
#PeckShieldAlert #KyberSwap Exploiter-labeled address bridged ~800 $ETH (worth ~$2.5m) from #Arbitrum to #Ethereum pic.twitter.com/xTWO7lOLJY
— PeckShieldAlert (@PeckShieldAlert) February 26, 2024
The transferred assets include approximately 799 ETH, valued at around $2.5 million, which were moved from the Arbitrum L2 network to the Ethereum blockchain. Additionally, a transaction involving DAI stablecoins exceeding $820,000 was traced to the same perpetrator.
#PeckShieldAlert #KyberSwap Exploiter-labeled address has transferred 826.5K $DAI to 0xc0f9…E296 pic.twitter.com/UP93PVtLxq
— PeckShieldAlert (@PeckShieldAlert) February 26, 2024
The KyberSwap breach, occurring in 2023, stands out as one of the most notable security incidents in the cryptocurrency realm. During the breach last November, the attacker managed to siphon off assets worth a staggering $47 million from the exchange’s pools.
Following the breach, the KyberSwap team attempted to negotiate with the hacker, offering to return 90% of the stolen funds in exchange for a 10% reward. However, the perpetrator insisted on gaining full control of the project, leading to a deadlock in negotiations.
In the aftermath of the incident, KyberSwap faced severe operational challenges, prompting the exchange to announce a significant downsizing, resulting in a 50% reduction in staff due to what they termed “unprecedented issues.”
Despite the setback, KyberSwap remained committed to compensating affected users and vowed to utilize funds from its treasury to provide grants to victims.
KyberSwap Treasury Grants: Thank you for your patience while we were finalizing details regarding the KyberSwap Treasury Grant Program for KyberSwap users affected by the KyberSwap Elastic Exploit. Details on the Treasury Grants program have been published. Please find the… pic.twitter.com/vMJtbTa9FP
— Kyber Network (@KyberNetwork) December 20, 2023
This commitment to restitution echoes their previous actions in 2022, when they reimbursed customers for 265,000 USDC stolen in a prior breach, underscoring their dedication to mitigating the impact of security breaches on their community.
