KyberSwap has announced a 10% bug bounty reward for the hacker who exploited their platform, resulting in a $47 million loss. This offer comes after the hacker left an on-chain message expressing willingness to negotiate the return of the funds.

As previously reported by Coin68 on 23/11/2023, KyberSwap, a decentralized exchange (DEX), fell victim to a flash loan attack that targeted its Elastic liquidity pools. The attack resulted in the theft of assets across multiple blockchains supported by KyberSwap, including Ethereum, Arbitrum, Optimism, Base, and Polygon.

In a brazen move, the hacker not only executed the transactions but also left detailed descriptions of their actions and an on-chain message to Kyber's team, indicating a willingness to negotiate the return of the stolen funds after a period of rest.

However, more than a day has passed since the attack, and the hacker has not sent any further communication. The crypto community discovered that the hacker transferred 1,000 ETH to a wallet associated with the Indexed Finance hack of 2020, suggesting a possible connection between the two incidents.

On the afternoon of 24/11/2023, KyberSwap's co-founder, Victor Tran, directly responded to the hacker, offering a 10% bounty (approximately $4.7 million) if 90% of the stolen funds are returned to a designated wallet by 01:00 PM on 25/11/2023 (Vietnam time).

According to DefiLlama data, the total value locked (TVL) in KyberSwap's DeFi products dropped from $87 million to $27 million following the confirmation of the hack. This figure has continued to decline, reaching $7.64 million as of the latest update.

TVL of KyberSwap as of 05:57 PM on 24/11/2023 - Source: DefiLlama

The price of Kyber Network's KNC token has not shown significant volatility since the hack, currently trading around $0.72.