KyberSwap Hacker Demands Full Control of Protocol or Else

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The hack­er who stole mil­lions from decen­tral­ized exchange aggre­ga­tor Kyber­Swap has demand­ed full “exec­u­tive con­trol” of the “Kyber com­pa­ny.” The return of stolen funds is con­tin­gent on the Kyber­Swap man­age­ment meet­ing their demands by Dec. 10x, which high­lights a prob­lem with decen­tral­iza­tion in general.

The Kyber­Swap hack­er wants full con­trol of the gov­er­nance of Kyber­DAO to make changes to the pro­to­col. They demand that the cur­rent man­age­ment resign and hand over all doc­u­ments and assets. 

KyberSwap Hacker Outlines Demands

Out­go­ing exec­u­tives will be bought out at “fair val­u­a­tion,” the exploiter reas­sured, while employ­ees’ salaries will be dou­bled. Any­one want­i­ng to leave will get a 12-month sev­er­ance “with full ben­e­fits.” In addi­tion, the hack­er offered liq­uid­i­ty providers 50% of their stolen funds.

“Under my man­age­ment, Kyber will under­go a com­plete makeover. It will no longer be the 7th most pop­u­lar DEX, but rather an entire­ly new cryp­to­graph­ic project,” they wrote.

Read more: 12 Best Decen­tral­ized Exchanges for 2023

Should Kyber not meet the demands, the hack­er will not return any stolen funds. The note was signed “Kyber Director.” 

Last Fri­day, Blockchain secu­ri­ty firm Cyvers flagged a mes­sage from the exploiter that promised Kyber a nego­ti­a­tion. The com­mu­ni­ca­tion fol­lowed a $45 mil­lion exploit of Ethereum and oth­er tokens from Kyber­Swap last Wednesday. 

KyberSwap Total Value Locked Drops to $7 million After Exploit
Kyber­Swap Total Val­ue Locked Drops to $7 mil­lion After Exploit | Source: DeFiLla­ma

The hack­er appears to have drained funds from liq­uid­i­ty pools. Kyber­Swap helps cryp­to users access liq­uid­i­ty from mul­ti­ple blockchains.

Read more: Best Cryp­to Liq­uid­i­ty Providers in 2023

Decentralization Conundrum

While a car­i­ca­ture in some sense, the hacker’s ran­som mes­sage gets to the heart of what some law­mak­ers have expressed con­cerns about. Despite claims of decen­tral­iza­tion, the real­i­ty is that pow­er for many pro­to­cols lies in the hands of a few influ­en­tial enti­ties. Hence, it becomes pos­si­ble for some­one like the Kyber­Swap hack­er to black­mail a major­i­ty group and take control.

Car­dano founder Charles Hoskin­son alleged ear­li­er this week that one could take over the Bit­coin net­work by issu­ing sub­poe­nas to three enti­ties. This is despite max­i­mal­ist claims the net­work is decen­tral­ized and immune to gov­ern­ment control.

Car­dano itself is going through a process to give Hoskin­son and Input Out­put Glob­al less say in the net­work man­age­ment. An upcom­ing Car­dano bal­lot will lay the plat­form for com­plete­ly decen­tral­ized gov­er­nance. Vot­ing will open on Dec. 1 and end on Dec. 11.

Do you have some­thing to say about the demand note from the Kyber­Swap hack­er or any­thing else? Please write to us or join the dis­cus­sion on our Telegram chan­nel. You can also catch us on Tik­TokFace­book, or X (Twit­ter).

Disclaimer

In adher­ence to the Trust Project guide­lines, BeIn­Cryp­to is com­mit­ted to unbi­ased, trans­par­ent report­ing. This news arti­cle aims to pro­vide accu­rate, time­ly infor­ma­tion. How­ev­er, read­ers are advised to ver­i­fy facts inde­pen­dent­ly and con­sult with a pro­fes­sion­al before mak­ing any deci­sions based on this content.



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