Decentralized exchange protocol KyberSwap recently lost $4.67 million in funds due to a security attack.
Last week’s hack resulted in a loss of $47 million from Kyber’s centralized liquidity pool.
Part of the fund recovery was completed yesterday through negotiations with a leading bot operator who extracted approximately $5.7 million in cryptocurrency from KyberSwap pools on the Polygon and Avalanche networks during the hack. said.
The bot operators agreed to a deal that would return 90% of the funds they took to a designated KyberSwap address on the Polygon network and offer a 10% bounty as incentive.
This negotiation is different from the hacker in the main event who previously expressed his willingness to negotiate. The team has offered a White Hat bounty, but those negotiations don’t appear to have taken place yet.
Hackers targeted KyberSwap’s Elastic pool, affecting funds on multiple blockchains, including Arbitrum, Optimism, Ethereum, Polygon, and Binance Smart Chain.
The vulnerability exploited by the hackers was related to a tick interval boundary issue in Kyber’s centralized liquidity pool, which they manipulated into doubling liquidity and then draining the pool.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.