4.7 million dollars recovered by KyberSwap after exploit
Its concentrated liquidity pools were emptied last week to the tune of $47 million.
After a recent security breach, the decentralized exchange system KyberSwap was able to recover $4.67 million in funds. The concentrated liquidity pools of Kyber lost $47 million last week due to a hacking attack.
Negotiations with the operators of front-running bots, who stole around $5.7 million worth of cryptocurrency from KyberSwap pools on the Avalanche and Polygon networks during the attack, were successfully concluded yesterday, allowing the team to recover a part of the funds.
In exchange for a 10% reward, the bot operators promised to send 90% of the funds they had stolen to a designated Polygon KyberSwap address.
The hacker from the main event, who had previously shown signs of being amenable to negotiations, is not involved in this discussion. The team’s white hat reward offer seems to have stalled in negotiations.
Optimism, Binance Smart Chain, Ethereum, Arbitrum, and Polygon were among the several blockchains affected by the hacker’s attack on KyberSwap’s Elastic pools.
The hacker used a flaw in Kyber’s concentrated liquidity pools’ tick interval restrictions to their advantage, doubling the pools’ liquidity before draining them.