The management of the embattled decentralized exchange KyberSwap has made plans to compensate victims of the protocol’s $ 54.7 million exploit. This development comes a few days after the hacker behind the incident demanded full control over the protocol in return for the stolen funds.
Kyberswap Dips Into Treasury To Reimburse Hack Victims
In its master plan for the remuneration of all users affected by the multi-million dollar exploit of KyberSwap Elastic protocol, Kyber Network – the parent company of the exchange – has announced the protocol’s treasury will be giving a grant to each victim equivalent to the USD value of their stolen assets as at the time the heist occurred.
While KyberSwap is a decentralized and permissionless DeFi project whose Terms of Use state that users are responsible for all risks involved in engaging with protocol in any capacity, its management has decided to take this approach and show solidarity and support for their users amidst this turbulent time.
For now, Kyber Network states that plans for the proposed treasury grants are still being finalized, with more details to be released in the next two weeks. In addition, the DEX’s management also reiterated its dedication to an effective collaboration with law enforcement agencies and cybersecurity firms in locating the exploiter as well as full recovery of the stolen funds.
KyberSwap became the latest victim of crypto hacks in 2023 after an exploiter meticulously manipulated the platform’s liquidity before proceeding to drain user funds in the tens of millions. This heist involved multiple well-planned steps, and users’ assets were stolen from several chains that host the DEX, including Base, Polygon, and Arbitrum.
Following the confirmation of the attack, the Kyber Network has since directed users to withdraw all remaining assets on the protocol while it conducts an investigation of the incident. According to data from DefiLlama, KyberSwap’s total valued locked (TVL) declined by 98.28% in the last week and is now valued at $7.2 million.
Hacker’s Deadline Approaches
In other news, the set deadline for KyberSwap’s management to respond to the hacker’s demand in return for the stolen funds is getting closer with each passing day.
On November 30, the exploiter sent an on-chain message to all relevant parties listing several audacious demands. Notably, this message came after the Kyber Network initially offered the hacker a 10% bounty fee to give back the stolen assets.
The hacker’s demands included full control over the Kyber (the company), temporary full control and ownership of the KyberDAO, all files and information relating to Kyber company, as well as all aspects of its operations, and ownership of all assets belonging to the company.
The hacker also offered to buy out all executives at the company at a fair price as well as double the salary of all active employees. So far, the Kyber Network is yet to respond to these demands. However, it looks set to turn it down, having reiterated his commitment to tracking down the hacker.
Total crypto market cap valued at $1.4511 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from CIO , chart from Tradingview
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Semilore Faleti
Semilore Faleti works as a crypto-journalist at Bitconist, providing the latest updates on blockchain developments, crypto regulations, and the DeFi ecosystem. He is a strong crypto enthusiast passionate about covering the growing footprint of blockchain technology in the financial world.
