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Hacker’s audacious demands shake Kyber network

Sushi users advised to stop all transactions amid front-end hack scare!Sushi users advised to stop all transactions amid front-end hack scare!

In this post:

  • A hacker stole $50 million from Kyber Network and demanded full control, surprising the cryptocurrency world.
  • Ripple’s CTO responded with sarcasm, questioning the feasibility of the hacker’s demands.
  • The incident highlights ongoing security challenges in decentralized finance (DeFi) and raises concerns about the industry’s future.

In a daring move that has sent shockwaves through the cryptocurrency and decentralized finance (DeFi) communities, a mysterious hacker who infiltrated the Kyber Network in November has demanded complete control of the protocol, including governance infrastructure. The hacker’s audacious proposal, which also includes promises to pay off the protocol’s owners, double staff salaries, and make sweeping improvements, has raised eyebrows and sparked discussions about the future of DeFi security.

Exploiter’s Brazen heist and demands

The hacker initially made headlines in November when they fraudulently siphoned at least $50 million from various blockchains hosted on the Kyber Network platform. This audacious theft is one of many such exploits recorded in the DeFi space this year. However, what sets this incident apart is the hacker’s subsequent demands.

In a public proposal, the hacker outlined their demands, which go beyond financial gain. They have insisted on gaining full authority over the Kyber Network’s governance infrastructure, known as KyberDAO. Furthermore, the hacker has demanded the handover of all company-related documents and assets, both online and offline. In return, the hacker has promised to pay off the protocol’s owners at a fair valuation, double the salaries of staff members who choose to remain with Kyber Network, offer rebates to liquidity providers, and undertake a comprehensive overhaul of the protocol.

David Schwartz, Chief Technology Officer of Ripple Labs, couldn’t resist injecting a touch of sarcasm into the situation. In response to the hacker’s proposal, Schwartz posed a rhetorical question, asking whether it was “too late to ask for a unicorn and a spaceship.” His remark underscores the audacity of the hacker’s demands and the skepticism surrounding the feasibility of their promises.

Historical precedents in crypto heists

While the hacker’s demands may seem unprecedented, the world of cryptocurrency and DeFi has witnessed previous high-profile hacks that led to negotiations between hackers and victims. One notable example is the Poly Network hack of 2021, where an exploiter returned more than $600 million stolen in exchange for a bounty payment. These incidents have showcased the complex dynamics of cybersecurity, ransom negotiations, and the moral dilemmas faced by hackers.

As the deadline for the hacker’s proposal looms on December 10, the future of Kyber Network remains uncertain. The cryptocurrency community is closely monitoring developments, and the fate of the stolen funds hangs in the balance. Whether Kyber Network’s stakeholders will entertain the hacker’s audacious demands or explore alternative avenues to recover the stolen assets remains to be seen.

The implications for DeFi security

This incident serves as a stark reminder of the evolving challenges and risks faced by the DeFi space. While DeFi platforms offer innovative financial solutions, they are also vulnerable to sophisticated attacks, highlighting the need for robust security measures and proactive risk management. As DeFi continues to gain traction in the broader financial ecosystem, regulators, developers, and stakeholders must collaborate to fortify the industry against such threats.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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