A decentralized exchange (DEX), KyberSwap, recently suffered a considerable security breach that resulted in substantial financial losses. In a new twist, the hacker behind the breach transferred much of the stolen money, almost $2.5 million in Ether, from Arbitrum to the Ethereum network. This has attracted the attention of blockchain analytics firms and has raised worry within the crypto community about the security of decentralized finance (DeFi) platforms.

Hacker Moves Millions

The KyberSwap exploiter, having been associated with a significant hack that stole about $49 million worth of cryptocurrencies initially, has been spotted bridging a considerable amount of Ether to the Ethereum mainnet. 

This activity was identified and reported by the blockchain security company PeckShield, indicating the continued actions of the hacker after the output. More particularly, the hacker sent almost one million dollars in Dai stablecoins to one more wallet, showing a bigger plan to convert the stolen funds into liquid assets.

The Aftermath of the KyberSwap Attack

The KyberSwap attack has been one of the most essential security events within the DeFi sector in recent history. After the hack was detected in November, KyberSwap urged its customers to withdraw funds to reduce additional losses.

Concurrently, analysis disclosed that the assailant withdrew around $49 million in different cryptocurrencies, signalling how many vulnerabilities are present in DeFi protocols. Moreover, after the hack, a 50% reduction in KyberSwap’s workforce was witnessed, as reported by Coingape.

Response and Negotiations

In an exciting twist, the hacker initiated an on-chain conversation with KyberSwap, proposing negotiating to return the funds. KyberSwap’s team offered a 4.6 million dollar reward in exchange for 90% of the stolen assets.

Nonetheless, the matter worsened when the hacker proved unsatisfied with KyberSwap’s handling of the situation and claimed that he would need control of the whole company with all its assets. This requirement provides a clear example of the audacious nature of contemporary hackers.

In the chaos, KyberSwap unveiled the treasury grants that would be used to help the victims of the hack. This move is the platform’s way of being loyal to its users, providing reimbursement in the USD value of the lost assets during the mishap. Giving financial assistance underlines the difficulties of DeFi platforms in guaranteeing user safety and sustaining trust after an exploit.

Security Reevaluation

The security breach of KyberSwap has triggered a review of security practices across DeFi platforms. The breach resulted in substantial financial losses and revealed the complex vulnerabilities of the decentralized exchanges’ architecture. 

Efforts to enhance the security of KyberSwap and other impacted platforms in response to the attack serve as an essential lesson regarding the role of strict security protocols in protecting digital assets from sophisticated cyber threats.

Read Also: Ethena Labs Announces Epoch 2 of the Shard Campaign

The post KyberSwap Attack Update: $2.5M in Ether Transferred to Ethereum Network appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am