KyberSwap, a decentralized exchange (DEX) aggregator, fell victim to a reentrancy attack on November 23, 2023, resulting in the theft of $48.3 million in assets across multiple networks, including Arbitrum, Optimism, Ethereum, Polygon, and Base. The attack led to a 90% drop in the total value locked (TVL) on the platform, significantly impacting KyberSwap’s operations.
According to on-chain data, the hacker responsible for the attack has been actively selling Arbitrum (ARB) over the past three days, capitalizing on the recent price surge of the altcoin. Spot On Chain, an on-chain data provider, reported that the hacker sold 1.70 million ARB tokens for an average price of $1.68, amounting to $2.86 million in exchange for 1,221 ETH.
The hacker still holds approximately 678,000 ARB tokens worth $1.32 million, and Spot On Chain warns that further sales of the altcoin by the attacker are likely. During the attack, the hacker transferred about 4 million ARB worth $4.06 million, 16,217 ATH tokens valued at $33.5 million, 591,441 OP tokens worth $1.03 million, and 1.11 million DAI tokens valued at $1.11 million to their wallet.
The timing of the ARB sales coincides with a 46% price increase of the altcoin over the past seven days, suggesting a strategic trade by the hacker. Despite the heavy selling by the attacker, ARB has continued its upward trend, rising to $1.9634 from an average of $1.56 when the hacker began selling on January 1st.
Current data shows ARB has risen 5.48% in the last 24 hours, trading at $1.92. Over the past 30 days, the altcoin has surged by 74.35%. However, the price of ARB still trades 83.72% below its peak of $11.80 reached on September 11, 2023, following its market introduction.
The strategic disposal of ARB by the hacker during the rally highlights the vulnerability of decentralized platforms to sophisticated attacks and the potential for attackers to profit from market movements post-theft.