Hacker Behind KyberSwap Attack Transfers $2.5 Million Crypto

Tyler Cross
Tyler Cross Senior Writer
Tyler Cross Tyler Cross Senior Writer

Blockchain analytics firm, PeckShield, detected the hacker responsible for the recent attack on KyberSwap transferring several million dollars between blockchains.

The attack on KyberSwap was one of the most prolific decentralized finance (DeFi) hacks in 2023. Attackers completely drained the platform’s cryptocurrency. Afterward, they posted a notice on the blockchain stating that once they were fully rested, negotiations could begin. In response, KyberSwap offered a $4.6 million reward for 90% of their stolen funds.

After KyberSwap began working alongside law enforcement, the hackers changed the nature of their requests. Instead of asking for a lump sum of money, they began demanding that KyberSwap give them full control over the platform.

In the end, demands weren’t met and the hacker laid dormant for several months. It’s normal for crypto hackers to wait several months before attempting to transfer funds. Doing this helps “take the heat” off of their transfer.

In this case, the transfer was detected immediately. One of the hackers transferred 798.8 Ethereum ($2.5 million) worth of stolen funds to a new wallet. While this isn’t a silver bullet in the hands of law enforcement agencies, it’s a valuable piece of evidence that will help lead researchers to narrow down suspects.

Unlike when cash trades hands, all cryptocurrency transactions are permanently visible and forever stored on a public blockchain. This helps law enforcement agencies around the world narrow in on crypto hackers and thieves.

The attack was devastating for KyberSwap. Immediately following the attack the company lost over half of its workforce.

While researchers keep a watchful eye on the hacker’s wallets and law enforcement agencies look into the hack, KyberSwap has been doing its part by refunding victims of the attack. The exchange opened up a treasury grant program that allows victims to sign up and receive a portion of the treasury grant.

Whether or not this grant will be enough to fully cover losses it yet to be seen.

About the Author
Tyler Cross
Tyler Cross
Senior Writer

About the Author

Tyler is a writer at SafetyDetectives with a passion for researching all things tech and cybersecurity. Prior to joining the SafetyDetectives team, he worked with cybersecurity products hands-on for more than five years, including password managers, antiviruses, and VPNs and learned everything about their use cases and function. When he isn't working as a "SafetyDetective", he enjoys studying history, researching investment opportunities, writing novels, and playing Dungeons and Dragons with friends."

Leave a Comment