KyberSwap Breach: 2.5M Dollars Diverted to Ethereum via Hacker’s Bridge

Crypto News- The mastermind behind the assault on the decentralized exchange (DEX) KyberSwap has been spotted orchestrating a digital asset shuffle across blockchains, tallying up to millions in value.

KyberSwap Breach: 2.5M Dollars Diverted to Ethereum via Hacker’s Bridge

Today, on Feb. 26, PeckShield, a blockchain analytics firm, shed light on the movements stemming from the KyberSwap attacker’s wallet address. A staggering 798.8 Ether (ETH), currently valued at approximately $3,064 each, totaling nearly $2.5 million, was seamlessly bridged from Arbitrum to the Ethereum network.

But that’s not all. The hacker didn’t stop there. In addition to the substantial Ether transfer, close to a million dollars in stablecoins took flight. A wallet associated with the perpetrator slid $826,500 worth of Dai (DAI) stablecoin to an undisclosed destination.

Recall, the KyberSwap assault reverberated across the crypto sphere as one of 2023’s most significant breaches. It all started on Nov. 23, when KyberSwap sounded the alarm, alerting its user base of a “security incident” and urging immediate fund withdrawals. Initially, the damage was pegged at around $46 million, but subsequent investigations unveiled a staggering loss nearing $49 million.

Adding a twist to the saga, the hacker left a cryptic message on-chain for the KyberSwap team, hinting at negotiations post-rest. Responding with a controversial move, KyberSwap extended a $4.6 million bounty, urging the return of 90% of the pilfered funds.

Yet, tensions escalated as negotiations took an unexpected turn. On Nov. 29, the hacker fired off a warning shot, threatening further delays if met with what they perceived as hostility and legal threats from the KyberSwap side.

Navigating the Cryptic Maze: KyberSwap Hacker’s Trail of Digital Deception

In a stunning twist, the hacker upped the ante, demanding not just a ransom but total control over KyberSwap and its assets. With a deadline of Dec. 10, 2023, looming, the hacker laid down the ultimatum, pushing KyberSwap to a critical juncture.

Responding to the chaos, KyberSwap sought solace for its battered community. On Dec. 2, 2023, the team unveiled a relief plan, extending grants to the victims left in the hack’s wake. However, the fallout was substantial, forcing the company to make the painful decision of slashing its workforce by half just a month after the exploit.

The KyberSwap saga serves as a stark reminder of the risks entrenched within the burgeoning realm of decentralized finance (DeFi), where innovation often outpaces security measures, leaving both investors and platforms vulnerable to exploitation.