KyberSwap Puts $50M Heist Behind, Offers 10% Bounty to Attacker

• DAO Negotiates with Hacker After $50 Million Heist from KyberSwap
• KyberSwap's Liquidity Pools Victim to Sophisticated Attack
• DAO's Open Message to the Cyber Attacker
• Deadline and a Growing Trend in DeFi Exploits
• Heightened Activity in DeFi Hacks

DAO Negotiates with Hacker After $50 Million Heist from KyberSwap

The Decentralized Autonomous Organization (DAO) supervising KyberSwap, a notable decentralized exchange (DEX), has initiated negotiations with the individual responsible for a $50 million theft on November 22nd.

KyberSwap's Liquidity Pools Victim to Sophisticated Attack

The heist specifically targeted KyberSwap's liquidity pools. Prior to the attack, the DEX had a total value locked (TVL) of approximately $80 million - a figure which has now plummeted to a mere $7.78 million.

DAO's Open Message to the Cyber Attacker

In a unique form of communication, the DAO reached out to the hacker through a message sent from a contract deployer wallet. The message acclaimed the sophistication of the breach, stating, You have executed one of the most complex hacks. This was a high expected value (EV) incident that went unnoticed.

The DAO then proposed a bounty offer equivalent to 10% of the stolen user funds in exchange for the safe return of all pilfered assets.

Deadline and a Growing Trend in DeFi Exploits

The cyber attacker was given until November 25, 06:00 UTC, to return the stolen funds. This instance of communicating via transaction signatures is a rising trend in decentralized finance exploits. It is also proving to be an effective way for protocol teams to negotiate with their adversaries.

Heightened Activity in DeFi Hacks

According to data provided by DefiLlama, over $290 million has been lost due to DeFi hacks in this month alone. Furthermore, the overall losses for this year amount to a staggering $1.2 billion.

Edited by Jonathan Stoker