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Kyber Network has announced that it has reached a deal with the owners of frontrun bots. The KyberSwap team has finalized a bounty of 10% for them in exchange for 90% of the stolen funds. The hackers were able to extract approximately $5.7 million from the pools of Avalanche and Polygon. Now, funds worth $4.67 million have been received back, and Kyber Network is cooperating with law enforcement and cybersecurity to track down the malicious actors.
A total of 8 transactions were executed to return the funds.
- 361.92 axl-wstETH = $870.5k
- 813,198.63 dBSGG = $813.2k
- 261.5 wstETH = $624k
- 441.8 WETH = $919k
- 443,011.6 USDT = $443k
- 711,430.9 WMATIC = $547.8k
- 65,130 USDT = $65.1k
- 385,630.7 USDC = $385.6k
The value of stolen funds reflects what they were worth at the extraction time. The value of the funds returned is when the official announcement is made.
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This has boosted the community with optimism, as most of the members are congratulating the team for concluding negotiations successfully and getting the funds back from frontrun bot owners.
The incident is not precisely the one that happened in the last 1-2 days. It goes back to the previous week, when KyberSwap called it a security incident and asked its customers to withdraw their funds as a precautionary measure. As a result of the hack attack, customers voluntarily withdrew $78 million and the TVL dipped by 68%. KNC, its native token, felt the effect of the aftermath as its trading value fell by 2.49% in the 24 hours after the announcement of the attack. The trading value was at $0.7254.
There has not been a significant change when it comes to exchanging hands on the board. KNC is now at $0.729, with a slip of 0.59% in the last 24 hours. In an extension, that is a drop of 7.23% in the last 7 days. Hackers extracting the funds from the pools of Avalanche and Polygon took a hit at their respective native tokens too.
MATIC dropped by 10.18% to $0.7577, while AVAX took a hit of 7.06% to be traded at $20.78 in the last week. Members did not really take the announcement of the frontrun bot attack well. Most of them had called it yet another incident in the industry. Only a few appreciated Kyber Network for taking swift action.
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The attack on Kyber Network continues to raise concerns over the security measures that crypto platforms deploy. Their ultimate objective should be to protect their customers’ funds along with their sensitive data. Attacks like these drain funds from the network and hurt investors’ bullish sentiments and the chances of mass adoption of digital tokens.
