KyberSwap recovers $4.7 million after the exploit

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Decentralized exchange protocol KyberSwap has recovered $4.67 million in funds following a recent security attack.

A hacker attack last week resulted in a loss of $47 million from Kyber's concentrated liquidity pools.

Part of the fund recovery was completed yesterday through negotiations with the operators of front-running bots that withdrew around $5.7 million in cryptocurrencies from KyberSwap pools on the Polygon and Avalanche networks during the hack, the team said.

The bot operators agreed to a deal where they would return 90% of the funds they took out to a specific KyberSwap address on the Polygon network, with a 10% bounty as an incentive.

This negotiation is different from the main event hacker who previously indicated his willingness to negotiate. Although the team put out a white hat bounty, negotiations have apparently not progressed yet.

The hacker targeted KyberSwap's elastic pools and impacted funds on multiple blockchains, including Arbitrum, Optimism, Ethereum, Polygon and Binance Smart Chain.

The vulnerability exploited by the hacker was related to an issue with the tick interval limits in Kyber's concentrated liquidity pools, which they manipulated to double liquidity and then empty the pools.

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