Hacker Moves Funds from KyberSwap Attack to Ethereum Blockchain
The hacker responsible for the November 2023 KyberSwap attack was recently observed transferring nearly $2.5 million in cryptocurrency to the Ethereum blockchain, potentially complicating recovery efforts.
An X post by blockchain analytics firm PeckShield revealed that the hacker moved 798.8 Ether, valued at approximately $2.49 million, from Arbitrum to the Ethereum blockchain. In addition, the hacker also transferred $826,500 of the Dai stablecoin to another wallet.
The 2023 KyberSwap Attack
The KyberSwap attack, which occurred on November 23, 2023, was one of the most notable DeFi hacks of the year. KyberSwap informed its community of a “security incident” shortly after the attack began, urging users to withdraw their funds. Initial reports estimated the stolen assets at approximately $46 million, but subsequent investigations revealed a sum closer to $49 million.
The hacker left an on-chain message for the KyberSwap team, indicating their willingness to negotiate once “fully rested.” KyberSwap responded by offering the hacker a $4.6 million bounty in exchange for the recovery of 90% of the stolen funds. However, negotiations took a turn for the worse when the hacker threatened to delay proceedings if the KyberSwap team continued with legal threats.
Following this, the hacker altered their demands, expressing a desire for complete control over KyberSwap and its assets, including temporary full authority and ownership of KyberDAO and all associated documents. In response, the KyberSwap team initiated treasury grants for victims of the hack and announced grants for those who suffered losses in the exploit and had not yet recovered funds.
KyberSwap Continues Recovery Efforts
The KyberSwap team has been distributing treasury grants to affected users since the announcement. Registration for the treasury grant program is now open for various categories of affected users, including third-party events, addresses affected by contracts, and normal cases addressing those who missed the January 31 deadline.
The hack resulted in significant losses for KyberSwap, leading to a 50% reduction in its workforce within a month of the incident.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
