Polygon (Old)

Security

Avalanche

<p>The post <a href="https://coinpedia.org/news/frontrun-bots-return-5-7m-stolen-crypto-back-to-kyberswap-deployers/" rel="noopener noreferrer nofollow">Frontrun Bots Return $5.7m Stolen Crypto Back to Kyberswap Deployers</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>KyberSwap Elastic, a vital project of the Kyber network, brings encouraging news to its users. The team has made significant progress in its recovery journey, successfully reclaiming approximately $5.7 million in stolen cryptocurrency. This achievement highlights KyberSwap Elastic’s commitment to its users and its resilience to digital security challenges.</p>
<h2 class="wp-block-heading" id="h-details-of-the-recovery"><strong>Details of the Recovery</strong></h2>
<p>Blockchain security firm PeckShield reported that about 361,876 USDC.e, a digital currency, was returned to KyberSwap on the Avalanche blockchain. This return is linked to one of the individuals involved in the recent security breach.</p>
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   <p><a href="https://twitter.com/hashtag/PeckShieldAlert?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#PeckShieldAlert</a> Our community contributor has detected that one of the KyberSwap exploiters has refunded 361,876 <a href="https://twitter.com/search?q=%24USDC.e&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$USDC.e</a> on <a href="https://twitter.com/hashtag/AVAX?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#AVAX</a> <a href="https://t.co/EO82Pw606B" rel="noopener noreferrer nofollow">https://t.co/EO82Pw606B</a> <a href="https://t.co/Lc5towMVCX" rel="noopener noreferrer nofollow">pic.twitter.com/Lc5towMVCX</a></p>— PeckShieldAlert (@PeckShieldAlert) <a href="https://twitter.com/PeckShieldAlert/status/1728962572572070385?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 27, 2023</a>
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<p>Additionally, the KyberSwap team negotiated with the operators of certain automated trading programs, known as front-run bots. These negotiations led to the return of nearly $4.67 million to KyberSwap’s digital wallet on the Polygon blockchain. This was part of a deal where the bot operators kept a 10% bounty for returning 90% of the stolen funds.</p>
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   <p>The KyberSwap team has been in contact with the owners of the frontrun bots that extracted about $5.7M* worth of funds from KyberSwap pools on Polygon and Avalanche during the exploit.<br>We have negotiated with the owners of the frontrun bots to return 90% of the users’ funds taken…</p>— Kyber Network (@KyberNetwork) <a href="https://twitter.com/KyberNetwork/status/1728800315955437743?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 26, 2023</a>
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<h2 class="wp-block-heading" id="h-understanding-the-hack"><strong>Understanding the Hack</strong></h2>
<p>On <a href="https://coinpedia.org/news/kyber-swap-liquidity-pools-drained-hackers-loot-over-47-million/" rel="noopener noreferrer nofollow">November 23,</a> KyberSwap Elastic fell victim to a sophisticated digital attack. Hackers manipulated the platform’s smart contracts, a blockchain-based agreement, to unlawfully withdraw user funds. The total value of exploited funds reached around $54.7 million. In response, KyberSwap immediately halted deposits and initiated a detailed investigation. They also offered a 10% reward to the hackers for returning the stolen funds.</p>
<h2 class="wp-block-heading" id="h-ongoing-security-measures"><strong>Ongoing Security Measures</strong></h2>
<p>The KyberSwap team is vigorously working to recover as much of the stolen funds as possible. They have implemented extensive security measures, including internal checks, audits by renowned security firms, and community-driven security reviews. These efforts aim to not only recover the funds but also to strengthen the platform against future attacks.</p>
<h2 class="wp-block-heading" id="h-conclusion"><strong>Conclusion</strong></h2>
<p>This <a href="https://twitter.com/0xdoug/status/1727613541115429314" rel="noopener noreferrer nofollow">incident</a> is one of the most intricate in the decentralized finance (DeFi) sector, requiring a complex sequence of actions to exploit the system. The KyberSwap team remains dedicated to maximising fund recovery and enhancing the platform’s security, hoping to emerge stronger from this challenge.</p>

Frontrun Bots Return $5.7m Stolen Crypto Back to Kyberswap Deployers

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