Decentralized exchange protocol KyberSwap announced that it has recovered $4.67 million in funds following a recent security attack that resulted in a staggering loss of nearly $50 million from its concentrated liquidity pools last week.
The hacking incident targeted KyberSwap’s elastic pools and affected funds on various blockchains, including Arbitrum, Optimism, Ethereum, Polygon, Binance Smart Chain and Base. The attacker exploited a vulnerability related to the tick interval limits in Kyber’s concentrated liquidity pools.
By manipulating these limits, the hacker managed to double liquidity and then drain the pools, resulting in the theft of over $46 million worth of digital assets.
Negotiations with leading bots operators
In response to the attack, KyberSwap began negotiations with the operators of the leading bots that were responsible for extracting approximately $5.7 million in crypto from the protocol’s pools on the Polygon and Avalanche networks during the hack.
The negotiations ended on November 26th when the bot operators agreed to return 90% of the funds to a specific KyberSwap address on the Polygon network and received a 10% bounty as an incentive.
According to the official update, the recovered funds include:
- 361.92 axl-wstETH ($870.5k)
- 441.8 WETH ($919,000)
- 261.5 wstETH (~$624,000)
- 711,430.9 WMATIC (~$547.8k)
- 443,011.6 USDT (~443,000 USD)
- 385,630.7 USDC (~385.6k USD)
- 65,130 USDT (~65.1k USD)
Negotiations with hacker in limbo
It is worth noting that these negotiations with the leading bot operators are separate from the ongoing discussions with the main hacker.
Although KyberSwap has expressed its willingness to negotiate with the hacker, who has indicated a similar inclination, progress in these talks currently appears to be limited. The team had also announced a white hat bounty.
After recovering some of the stolen funds from leading bots, KyberSwap assured the community that it would support law enforcement and cybersecurity efforts in tracking and recovering user funds from the hacker.
“Following this recovery of user funds from the Frontrun bots, we will continue to support law enforcement and cybersecurity in tracking down and recovering user funds from the perpetrator of the exploit attack.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.