Decentralized exchange protocol KyberSwap has offered a 10% reward to the hacker who stole $47 million from the protocol in exchange for returning 90% of the stolen funds. This offer was made in response to a message left by the hacker on the blockchain.
KyberSwap’s Elastic pools were targeted in a hack attack where funds from various blockchains were stolen. Following the attack, the hacker left a message expressing their intention to negotiate the fate of the funds with the team.
The KyberSwap team offered an agreement to the hacker in response to the message on the blockchain. If the stolen funds are returned to a specified wallet address by November 25th at 09:00 GMT, the hacker will receive a reward of approximately $4.7 million.
Victor Tran, co-founder of KyberSwap, stated that the hacker had a choice between receiving a reward for returning the funds or continuing to evade. He did not rule out the possibility of issuing an ultimatum.
The reward offer is part of KyberSwap’s efforts to mitigate the consequences of the attack and restore liquidity providers. Blockchain security company Beosin revealed that the security breach that led to the attack was due to a vulnerability in KyberSwap’s liquidity pools’ price range limits. Exploiting this vulnerability, the hacker artificially doubled the liquidity and then emptied it.