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KyberSwap hacker moves $2.5M to Ethereum; BitForex halts withdrawals amid suspected hack



The hacker who exploited the KyberSwap vulnerability bridged $2.5 million of the stolen crypto assets to the Ethereum Network.

A wallet linked to the exploiter was observed moving $2.5 million from Arbitrum to Ethereum.

Blockchain security company PeckShield tweeted about movements from the hacker’s wallet address on Feb. 26.

Blockchain data shows the hacker bridged approximately 798.8 Ether, worth around $2.5 million, from Arbitrum to Ethereum.

In addition to the $2.5 million, the hacker also moved approximately $1 million in stablecoins.

Blockchain data shows that a wallet connected to the attacker sent $826,500 worth of Dai to another wallet.

The KyberSwap hack was one of the largest attacks of the year, and on Nov. 23, the DEX notified its users about a security incident and suggested that they withdraw their funds.

The hack was initially thought to have resulted in the loss of around $46 million in digital assets. Later, it was determined that the total loss was nearly $49 million.

The hacker left an on-chain message to the KyberSwap team, saying that negotiations would begin after they had rested

KyberSwap offered a bounty of $4.6 million to the attacker if 90% of the stolen funds were returned.

However, the bounty negotiations turned sour after the hacker expressed frustration with KyberSwap’s approach.

The hacker warned KyberSwap that their threats of legal action and lack of friendliness could further delay negotiations.

On Nov. 29, the hacker warned KyberSwap that their threats of legal action and lack of friendliness could further delay negotiations.

The hacker then made a surprising demand for complete control over the KyberSwap company and its assets.

The hacker also asked for temporary control over the KyberDAO governance mechanism and documents related to Kyber. The hacker gave KyberSwap until December 10 to respond before the “deal” would be over.

In response to the hacker’s demands, the KyberSwap team announced that it would create grants to support the victims of the hack.

On December 2, 2023, the team announced that it would grant funds to those who lost money in the exploit and had not been reimbursed.

In addition to the losses sustained by users of the platform, the company itself was affected by the hack and laid off half its workforce a month later.

BitForex halts withdrawals

Similarly, Hong Kong-based crypto exchange BitForex stopped user withdrawals from its platform for three days without informing its users.

Before the freeze, $56 million in cryptocurrency was withdrawn from BitForex, and the company did not explain the freeze, causing concern among its users.

ZachXBT, a crypto investigator, reported that $56 million had been withdrawn from the exchange before transactions stopped being processed. Since then, users on BitForex have had difficulty using their accounts.

Investors are speculating whether the shutdown could be related to a hack or if the Hong Kong-based company has run afoul of regulators.

There are speculations that this issue could be an ongoing one that can be traced back to the departure of former CEO Jason Luo who stepped down early last year.


Read also: Ethereum Foundation alongside zkSync allocates $900K for ZK Layer 2 development


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