Kyberswap Hack: Blockchain Security Firm Reports Movement of 800 ETH From Exploiter’s Address

Blockchain security firm Peckshield revealed on Feb. 26 that an exploiter labeled address associated with the Kyberswap hack had bridged approximately 800 ether tokens from Arbitrum to the Ethereum blockchain. On the same day, the Kyberswap team unveiled revised dates for reimbursing users impacted by the hacking.

Kyberswap Hacker Starts Moving Funds

Peckshield Alert, a blockchain security firm, reported on Feb. 26 that an address linked to cyber criminals who drained millions of dollars worth of digital assets from Kyberswap had moved approximately 800 ethereum (ETH) tokens from Arbitrum to the Ethereum blockchain. The firm also noted the transfer of 826.5K DAI from an exploiter’s address a few hours after the first transaction.

#PeckShieldAlert #KyberSwap Exploiter-labeled address bridged ~800 $ETH (worth ~$2.5m) from #Arbitrum to #Ethereum pic.twitter.com/xTWO7lOLJY
— PeckShieldAlert (@PeckShieldAlert) February 26, 2024

As Bitcoin.com News reported in November 2023, Kyberswap, a decentralized exchange (dex), suffered a loss exceeding $47 million due to a hack. Despite the dex’s subsequent efforts to recover all stolen funds, these attempts seemed to fail, leading the platform to reduce its workforce by 50%. However, despite the substantial loss, the dex platform vowed to compensate affected users.

At the time of writing (6 p.m. GMT Feb. 26, 2024), the Kyberswap team had not issued an official statement regarding the two incidents. The team however shared an update via X, providing revised dates for reimbursing users affected by the hacking.
“Due to operational complications, the timeline to process the following types of affected users for treasury grants and Recovered Funds Redemption has been updated,” the team said.

Recovered Funds Redemption Batch 2 Timeline Updates
👉 Recovered Funds Redemption Time for Types 1 and 2 Affected Users in Batch 2 has been postponed from February 26 – 14:00 UTC to February 27 – 14:00 UTC.
Type 1. Third Party Affected Users of DappOS, Pendle, Magpie/Penpie and…
— Kyber Network (@KyberNetwork) February 26, 2024

Meanwhile, in what turned out to be a busy day for Peckshield, the blockchain security firm said it detected the transfer of 200 ETH from an address labeled as a money exploiter to Tornado Cash. An address of the same label had moved 100 ETH to the decentralized crypto mixer just three days prior. These two transfers brought the total number of ether tokens moved by the suspected Abracadabra Finance hackers to 300.
Simultaneously, the blockchain intelligence firm disclosed two “rug-pull” incidents. In these events, cybercriminals absconded with digital assets exceeding a value of $300,000.
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