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KyberSwap Extends an Olive Branch: Offers 10% Bounty to $50M Attacker

Writer's picture: Blockonome GnomeBlockonome Gnome

KyberSwap Takes Unconventional Route, Offers Negotiation and Bounty to $50M Attacker

Hacker stealing money from crypto currency company Kyberswap

In the aftermath of a daring attack that saw $50 million vanish into the hands of an anonymous attacker on November 22, KyberSwap's decentralized autonomous organization (DAO) has opted for an unconventional approach. Instead of outright condemnation, they're extending an olive branch, seeking negotiations.


The attacker strategically targeted KyberSwap's liquidity pools (LPs), resulting in a significant blow to the decentralized exchange (DEX). With a notable total value locked (TVL) of approximately $80 million before the incident, KyberSwap now grapples with a reduced TVL of just $7.78 million.


Expressing a begrudging acknowledgment of the attacker's prowess, the DAO communicated through a message from a contract deployer wallet. Referring to the hack as "high EV" (expected value), the DAO proposes a unique negotiation strategy: a bounty equivalent to 10% of users' funds taken during the hack, ensuring the safe return of these funds.


KyberSwap sets a firm deadline for the attacker, urging them to consider the offer by November 25, 06:00 UTC. This timeline puts pressure on the attacker to decide whether to engage in negotiations or face potential consequences.


The tactic of teasing victims via transaction signatures containing strings of text has become a recurrent theme in decentralized finance (DeFi) exploits. Beyond psychological warfare, it serves as a channel for protocol teams to engage in negotiations with the attackers.


With over $290 million lost in DeFi hacks this month and a staggering $1.2 billion in losses recorded this year, according to DefiLlama, the DeFi landscape remains a battleground for security challenges and, evidently, negotiation strategies. The KyberSwap incident adds another layer to the evolving dynamics of decentralized finance.


(photo source / Blockonome)

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