TL;DR
- KyberSwap team recovered $4.67 million from part of the $46 million exploit on the platform between Nov. 22 and 23, 2023.
- Following the breach, KyberSwap actively strengthened the platform’s security and remained focused on recovering the maximum possible funds.
KyberSwap Network Recovers $4.67M from Frontrun Bots
In somewhat existing news, the KyberSwap Elastic announces that it has recovered approximately $4.67 million from the $46 million hack.
KyberSwap, in a post on social media platform X, said that they’ve been in contact with the operators of the front-run bots.
Operators who successfully siphoned around $5.7 million from KyberSwap liquidity pools on Avalanche and Polygon.
On November 23, 2023, KyberSwap lost $46M in DeFi heist, causing a major security crisis on the platform.
The hackers successfully manipulated Kyber’s smart contracts, the foundation of the blockchain-based agreement system, and got away with around $46 million in user funds.
Kyber team responded quickly to the mayhem, pausing deposits, and offering a 10% bounty to hackers for a return of 90% of the stolen funds.
This is according to a November 25, 2023, on-chain message on the Polygon network.
The same bounty is offered to the owner of this wallet, and we can set aside the funds for the bounty to distribute directly to users and confirm that we will not pursue any legal actions against the owner of this wallet.
The KyberSwap Network team said.
Additionally, the platform states that it is launching a detailed investigation into the exploit and will keep users updated on the progress.
Demonstrating their commitment to user security and resilience against digital threats, KyberSwap Elastic has effectively navigated this challenging situation.
A Closer Look at the Grand Recovery
PeckShieldAlert, a blockchain security firm, has played an important role in the recovery.
In a post on social media, the PeckShieldAlert reveals that approximately 361 876 $USDC.e on #AVAX was returned to KyberSwap.
The funds returned to the KyberSwap address on Polygon were wrapped tokens. They include wrapped-MATIC (wMATIC), USD Coin (USDC), Tether (USDT), and wrapped-Ether (wETH).
It marks a major victory that is linked directly to one of the individuals behind the hack.
Moreover, the KyberSwap team was also negotiating with the operators of front-run bots—some mysterious automated trading programs.
By the looks of things, the negotiation was fruitful, resulting in the return of approximately $4.67 million to KyberSwap’s wallet on the Polygon blockchain.
What sealed this deal was that the bot operators were to keep a 10% bounty for a 90% return of the stolen funds.
Fortifying KyberSwap Network After Breach
KyberSwap is taking important steps to secure users’ assets through internal checks, community-driven security reviews, and audits by certified security firms.
The platform aims to recover all stolen funds and also fortify the network against potential future hacks.
More importantly, ensures a safe and resilient future for its users. The breach marks intricate challenges that decentralized finance (DeFi) faces.
Despite the challenges, the KyberSwap team stands firm, dedicating their efforts to maximizing fund recovery and strengthening the platform’s security.
While the road ahead for KyberSwap may be uncertain, with determination, the platform will emerge stronger.
On a larger scale, the platform may also prove that sheer innovation and resilience will always have the upper hand over adversity.
Will KyberSwap Network come out on top amid all these adversities?
Julia Zakharchuk
Julia is a professional crypto and blockchain writer known for her insightful YouTube channel "MoneyFest." She showcases her dynamic presentation skills as a host and moderator at blockchain conferences. Julia drives also business development at ChainUp and advises UNITBOX, an innovative NFT renting protocol. With her exceptional expertise, Julia is a highly valued industry contributor and is set to make a lasting impact. We at Coinweb are lucky to have her on board.
