In recent crypto news, the hacker who recently exploited KyberSwap, a decentralized exchange protocol, and stole approximately $47 million, has demanded full authority over the company. The audacious demand was made public through a message left by the perpetrator on the blockchain.
The hacker’s exploit was described as a “complex and carefully designed smart contract exploit” by Doug Colkitt, founder of Ambient Exchange. The attacker manipulated the platform’s smart contract into believing it had more liquidity than it did, a strategy Colkitt referred to as an “infinite money glitch”.
The attack was directed at KyberSwap’s Elastic pools, leading to the compromise of funds across a variety of blockchains, including Arbitrum, Optimism, Ethereum, Polygon, and Base. The hacker took advantage of a vulnerability associated with the tick interval boundaries in Kyber’s concentrated liquidity pools.
In response to the attack, KyberSwap offered a 10% bounty to the hacker, amounting to roughly $4.7 million, on the condition that the remaining 90% of the stolen funds be returned. This offer is part of KyberSwap’s efforts to mitigate the consequences of the incident and make liquidity providers whole.
KyberSwap’s Hacker Now Demands Full Control of the Company
The hacker’s demand for full control over the company has sent shockwaves through the crypto community. On the 30th of November, the individual who compromised KyberSwap communicated a message via the blockchain to all parties concerned and those interested in the matter.
This individual articulated several stipulations, which encompass gaining control over the entire company, temporary absolute authority, and ownership of KyberSwap’s governance mechanism known as KyberDAO. Additionally, the hacker demanded all documentation about the company and all assets owned by Kyber.
It remains to be seen how KyberSwap will respond to this unprecedented situation. As the story unfolds, it serves as a stark reminder of the security challenges decentralized finance platforms face and the need for robust security measures in the rapidly evolving world of blockchain technology.
This incident has also sparked discussions about the ethical implications of negotiating with hackers and the potential precedent it could set for future security breaches in the crypto space. As the situation continues to develop, the crypto community will be watching closely to see how KyberSwap navigates this complex and challenging scenario.
