A cybercriminal responsible for breaching the decentralized exchange KyberSwap has been observed shuttling a significant sum of cryptocurrency across different blockchain networks. Blockchain analytics company PeckShield reported that the culprit relocated roughly $2.5 million in Ethereum, equating to 798.8 ETH, from the Arbitrum network to the Ethereum mainnet.
Massive Asset Transfer Post Heist
Alongside the Ethereum, nearly a million dollars in the stablecoin Dai were also moved by the hacker’s wallet, summing up to $826,500. The breach of KyberSwap, which was reported to its community on November 23rd, 2023, ranks as one of the most substantial hacking incidents of the year. An initial estimate pegged the theft at around $46 million, but later figures indicated a near $49 million loss in crypto assets.
The hacker communicated with the KyberSwap team on the day of the heist, hinting at a willingness to negotiate once “everything was completely quiet.” The team responded by offering a $4.6 million bounty for the return of 90% of the hijacked funds.
However, the dialogue between the parties soured when the hacker expressed discontent with KyberSwap’s approach and threatened to further delay negotiations in response to legal threats and what was termed as an unfriendly approach by the exchange.
Aftermath of the Crypto Heist
Taking an audacious stance, the hacker demanded complete control over KyberSwap and its assets, including temporary authority over KyberDAO, Kyber’s governance system. A deadline of December 10th, 2023, was given for the company to comply. Following these demands, KyberSwap announced grants to compensate victims who were unable to retrieve their stolen funds. The aftermath of the hack had severe repercussions for the company, resulting in the layoff of half its workforce a month following the incident.