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<p class="is-style-lead">The hacker responsible for siphoning off $46 million from the decentralized exchange protocol KyberSwap last week has pledged to release a statement on a potential deal with the victims on Nov. 30.</p> 
<p>In a dramatic twist of events involving a multimillion dollar hack and executives behind the blockchain protocol KyberSwap, hackers have responded with an on-chain message <a href="https://etherscan.io/tx/0x5c27d8e9248608f36b028a945f3d6ff31244ab45eb89e1d1a631f608a36454a1" target="_blank" rel="noopener">addressed </a>to KyberSwap executives, token holders, and liquidity providers, claiming that will not succumb to legal “threats.”</p> 
<p>“I said I was willing to negotiate,” the hackers posted on Nov. 28. “In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team. That’s ok, I don’t mind.” </p> 
<p>“Under the assumption that I am treated with further hostility, we can reschedule for a later date, when we all feel more civil. You need only say the word,” they continued. “If not, we proceed as planned on Nov. 30.”</p> 
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   <p lang="en" dir="ltr">The <a href="https://twitter.com/KyberNetwork?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@KyberNetwork</a> exploiter sent the team another message! <a href="https://t.co/DnuKUWjFMn" target="_blank">pic.twitter.com/DnuKUWjFMn</a></p>— Officer's Notes (@officer_cia) <a href="https://twitter.com/officer_cia/status/1729644068819357838?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">November 28, 2023</a>
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<p>KyberSwap, known for its cross-chain decentralized exchange services, initially proposed a bounty deal with the hacker returning 90% of the stolen funds across all exploits while allowing the hacker to keep the remaining 10%, which would amount to $4.6 million. </p> 
<p>However, the lack of immediate compliance from the hacker led KyberSwap to threaten legal action, prompting the bitter exchange. </p> 
<p>In an <a href="https://etherscan.io/tx/0xcd34182974b8db72afdfe82881eb5baa057ae32dff8a0dfab764a7445845e2c3" target="_blank" rel="noopener">on-chain message</a> dated Nov. 25, KyberSwap alerted the hacker of their engagement with law enforcement and cybersecurity experts, warning of the consequences of not accepting the initial offer.</p> 
<p>“So it’s better for you if you take the first offer from our previous message before law enforcement and cybersecurity track you down,” the KyberSwap team warned.</p> 
<p>KyberSwap also told the hacker that they plan to launch a public bounty program, offering rewards to anyone who can provide information aiding law enforcement in arresting them and recovering user funds.</p> 
<h2 class="wp-block-heading" id="kyberswap-recovered-4-67-million">KyberSwap recovered $4.67 million</h2> 
<p>The team behind KyberSwap have said they have managed to recover $4.67 million from the <a href="https://crypto.news/kyberswap-suffers-multichain-exploit-resulting-in-45m-loss/">$46 million exploit </a>on Nov. 26.</p> 
<p>This they said were from operators of front-running bots, which managed to extract around $5.7 million in crypto from KyberSwap pools on the Polygon and Avalanche networks.</p> 
<p>The team has not yet replied to the latest message from the hacker on X, and details of any new agreement remain ominous. </p> 
<p>Doug Colkitt, the founder of Ambient Exchange, explained that the hacker exploited a particular element of KyberSwap’s concentrated liquidity feature. This manipulation deceived the contract into acknowledging more liquidity than there actually was, effectively creating a situation akin to an “infinite money glitch.”</p> 
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   <p lang="en" dir="ltr">1/ Finished a preliminary deep dive into the Kyber exploit, and think I now have a pretty good understanding of what happened.<br><br>This is easily the most complex and carefully engineered smart contract exploit I've ever seen…</p>— Doug Colkitt (@0xdoug) <a href="https://twitter.com/0xdoug/status/1727613541115429314?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">November 23, 2023</a>
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<p>KyberSwap operates under the Kyber Network, a blockchain-based liquidity hub facilitating token exchanges across various blockchains without intermediaries.</p> 
<p>The attack affected multiple networks including Avalanche, Polygon, Ethereum, and layer-2 networks like Arbitrum, Optimism, and Base.</p> 
<p>Following the incident, KyberSwap experienced a drastic drop in its total value locked, plummeting over 91% from $84.9 million to $7.18 million, as per DefiLlama <a href="https://defillama.com/protocol/kyberswap" target="_blank" rel="noopener">data</a>.</p> 
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  TVL in KyberSwap following the incident | Source: DefiLlama
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<p>Speculations are rife in the user community with many suspecting the hacker to be the same individual responsible for the <a href="https://crypto.news/north-korean-ties-suspected-in-indexed-finance-treasury-attack/">Indexed Finance attack</a>, which, it should be noted, used crypto addresses connected to both incidents.</p>

KyberSwap and hackers troll each other in blockchain beef

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