KyberSwap Plans Compensation Amidst Hacker’s Ultimatum

Kyber Network's Decentralized Exchange, KyberSwap, has devised a strategy to reimburse victims of a $54.7 million exploit. This follows the hacker's demand for full protocol control in exchange for the pilfered funds.

Treasury Relief for Victims

In a remedial initiative, Kyber Network, the parent company, discloses its intention to grant victims an amount equivalent to the USD value of their stolen assets from the KyberSwap Elastic protocol. Despite the decentralized nature of KyberSwap, where users assume risks, this compensatory gesture demonstrates the management's solidarity with users during this challenging period.

Pending Treasury Grants and Collaboration with Authorities

While details of the proposed treasury grants are being finalized, Kyber Network pledges collaboration with law enforcement and cybersecurity entities to trace the exploiter and recover the funds. Victims await further information in the coming weeks.

KyberSwap Hit by Elaborate Hack

KyberSwap became the latest casualty of crypto hacks in 2023, as a meticulous exploiter manipulated liquidity, siphoning off millions from users across multiple chains—Base, Polygon, and Arbitrum. Users were promptly advised to withdraw assets while Kyber Network investigates. DefiLlama data indicates a staggering 98.28% TVL decline in the past week, reducing KyberSwap's value to $7.2 million.

Countdown to Hacker's Ultimatum

As the deadline looms for KyberSwap's response to the hacker's audacious demands, the situation intensifies. The hacker, having rejected a 10% bounty fee initially offered by Kyber Network, insists on full control of the company, KyberDAO ownership, executive buyouts, and more. Kyber Network remains silent but reiterates its commitment to tracking down the perpetrator.

The KyberSwap saga unfolds, with compensation plans underway amid a looming ultimatum. As the community awaits further developments, Kyber Network's resilience in pursuing the hacker remains evident, promising a continued effort to protect users and the protocol.