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KyberSwap Hacker Promises to Reach out When They Are ‘Fully Rested’

2 mins
Updated by Geraint Price
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In Brief

  • The party behind a recent exploit of a decentralized exchange aggregator, KyberSwap, has reached out to discuss terms with the protocol.
  • So far, the hacker has stolen over $45 million from the aggregator, marking a week of three incidents, two of which affected Justin Sun.
  • The links between HTX and Binance are painted in a troubling light after Binance CEO Changpeng Zhao pleaded guilty to criminal activity.
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A hacker who used TornadoCash to steal $45 million from decentralized exchange aggregator KyberSwap has reached out to negotiate with the team behind the protocol. The perpetrator said negotiations would take place when they “were fully rested.”

A hacker who stole $45 million in Ethereum and other tokens from KyberSwap on Wednesday said they are willing to negotiate. A type of dynamic market maker, KyberSwap helps decentralized finance users access liquidity across many blockchains.

KyberSwap Hack Started Off a Chain

Their exploit followed an $85 million attack on the HECO chain, which crypto mogul Justin Sun merged with the TRON blockchain in 2022. On Wednesday, a hacker also stole funds from two hot wallet owners by crypto exchange HTX, formerly Huobi.

Read more: How to Use a Blockchain Explorer to Look Up Transactions

The CTO of blockchain security firm Cyvers, Meir Dolev, suspects the same party attacked HECO and HTX. The HTX hack stole $2.5 million in Ethereum, $7.3 million Tether (USDT), $1.8 million US Dollar Coin (USDC), and $62,200 worth of Chainlink (LINK) tokens. Sun confirmed the hack and said HTX, formerly Huobi Global, would “fully” compensate affected customers.

Kaiko Research recently highlighted concerning connections between Binance and HTX. The latter sold $350 million for USDC in July and then transferred the USDC to Binance, which recently made headlines for its connections to Hamas. Poloniex, an exchange linked with Sun, settled with the US Office of Foreign Assets Control in May for providing “economic benefit” to 232 sanctioned entities.

Read more: 7 Best Binance Alternatives in 2023

Kaiko HTX and Binance
Kaiko HTX and Binance. Source: Kaiko Research

In October, 14% of HTX’s reserves comprised staked Tether (stUSDT), a token it gives some customers of its JustLend product. The concentration of stUSDT spooked institutional investors, who withdrew much of their holdings in October. It may also compromise Sun’s ability to compensate for lost assets in the recent hack.

Binance: Is This the End? Source: YouTube

Sun is facing a lawsuit from US regulators for the alleged wash trading of crypto tokens. Former Sun rival and Binance boss Changpeng Zhao pleaded guilty to helping fund terrorist activity.

Do you have something to say about the KyberSwap hack 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).

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David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
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