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KyberSwap DEX hacker sends an on-chain message: Be nice, or else .

KyberSwap DEX hacker sends an on-chain message: Be nice, or else .

According to on-chain data, the decentralized exchange system KyberSwap looks to have been the victim of a $47 million hack. The funds came through the company’s Elastic Pools liquidity solution.

The exploiter has demanded its execs and tokenholders ease up on the hostilities, threatening to push out negotiations until everyone is “more civil ” .

KyberSwap DEX suffers millions in losses

The Kyber Network team informed its users on November 23 via an X (Twitter) post that KyberSwap Elastic “has experienced a security incident.”

Urgent

Dear KyberSwap Elastic Users, We regret to inform you that KyberSwap Elastic has experienced a security incident. As a precautionary measure, we strongly advise all users to promptly withdraw their funds. Our team is diligently investigating the situation, and we commit to keeping you informed with regular updates. Thank you for your understanding and cooperation during this challenging time.

KyberNetwork (@KyberNetwork )23 November 2023

The decentralized autonomous organization (DAO) running the KyberSwap decentralized exchange (DEX) reached out to the attacker who walked off with $50 million on 22 Nov with a message: We want to negotiate.

In an on-chain message addressed to KyberSwap executives, tokenholders and liquidity providers on 28 Nov, the exploiter said they plan to release a statement around a potential treaty with KyberSwap on 30 Nov — but won’t do it if hostilities continue.

“I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team,” they said.

The @KyberNetwork exploiter sent the team another message! pic.twitter.com/DnuKUWjFMn— Officer’s Notes (@officer_cia) November 28, 2023

The team hasn’t yet responded to the exploiter’s latest message on X (formerly Twitter) and is presumably waiting to see the new treaty proposed by the hacker.

Decentralized finance expert Doug Colkitt stated a day after the 22 Nov hack that the attacker utilized an “infinite money glitch” to execute a “complex and carefully engineered smart contract exploit” across multiple networks that implement KyberSwap pools.

According to DefiLlama data, KyberSwap’s total value locked (TVL) dropped by 68% in a matter of hours, and about $78 million left the protocol as a result of the attack and user withdrawals.

Its TVL is currently $27 million, down from a peak of $134 million in 2023.

The funds were exploited from Avalanche, Polygon and Ethereum and layer-2 networks Arbitrum, Optimism and Base.

The hacker’s demands

The attacker had said negotiations would start when they are “fully rested,” and hasn’t been heard from since.

“Dear Kyberswap Developers, Employees, DAO members, and LPs, Negotiations will start in a few hours when I am fully rested. Thank you.” In addition, the perpetrator sought out, “How is Ontario this time of year?”  28 ,November 2023

KyberSwap runs on Kyber Network, a blockchain-based liquidity hub that :

  • aggregates liquidity across different blockchains .
  • enables the exchange of tokens without an intermediary .

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