KyberSwap Attempts to Recover Losses, Offers 10% Bounty Following $50 Million Hack – Coinpedia Fintech News

KyberSwap, a prominent multi-chain decentralized exchange (DEX) aggregator, is in discussions with the hacker responsible for the recent $50 million attack. The platform is proposing a 10% bounty, equivalent to the funds taken from users, in exchange for the safe return of all the stolen assets.

KyberSwap Attack Details

The hack, executed on November 23 through a smart contract reentrancy attack, led to a significant loss of approximately $50 million across various networks. 

Following the breach, KyberSwap’s Total Value Locked (TVL) plummeted by 90%, from around $80 million to just $7.78 million, underscoring the severe consequences of vulnerabilities in smart contracts.

The decentralized autonomous organization (DAO) overseeing KyberSwap’s decentralized exchange (DEX) has expressed its intention to negotiate with the attacker, recognizing the sophistication of the hack and proposing a unique resolution.

10% Bounty Offer to Hacker

In an unprecedented move, KyberSwap has reached out directly to the hacker responsible, proposing a unique resolution. The platform is offering a 10% bounty, equivalent to the funds taken from users, for the safe return of all stolen assets.

Providing a clear ultimatum, the DAO has set a deadline for the attacker to return 90% of the stolen funds to a specified crypto wallet address by 6 am UTC on November 25 or face consequences.

Meanwhile, understanding how complicated the hack was, the team managing KyberSwap is doing something different. They’re not just acknowledging the difficulty of the situation; they’re also giving the hacker a way to settle things privately. 

The hacker can reach out through an email address they’ve provided, keeping the conversation confidential.

Kyber Network’s Immediate Response

Following the breach, Kyber Network promptly advised users to withdraw their funds as a precautionary measure. The team is actively investigating the incident to comprehend its full extent and enhance security measures to prevent future vulnerabilities, as per the coinpedia report.

This incident emphasizes the critical need for robust security protocols in decentralized finance (DeFi) platforms, particularly in managing smart contracts.

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