KyberSwap Hacker Asks For Complete Control of the Firm

Published: Nov 30, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

The pseudonymous hacker who exploited the decentralized exchange KyberSwap earlier this month has issued startling demands that would grant them complete authority over the battered protocol’s operations and assets.

In an on-chain message addressed to “all relevant and/or interested parties,” the exploiter calling themselves “Kyber Director,” thanked the community for patience during this “uncertain time. The hacker also outlined terms for a “treaty” to avoid further degradation of the once-popular DEX.

KyberSwap hacker lays out demands

The hacker’s demands, which must be met by December 18th, include:

  • Full executive control of KyberSwap’s corporate leadership structure
  • Temporary full ownership of KyberDAO to unilaterally alter governance rules
  • Access to all financial statements, cap tables, IP, and other confidential documentation
  • The legal transfer of all on- and off-chain assets into their possession

The hacker promises certain outcomes if their demands are met:

  • Executives will be bought out at a fair valuation, emphasizing they haven’t committed any wrongdoing.
  • Employees, regardless of their decision to stay or leave, will be provided with a 12-month severance package with full benefits.
  • Token holders and investors are assured that their tokens will no longer be worthless, and Kyber will undergo a complete transformation under new management.
  • Liquidity providers (LPs) will receive a rebate covering 50% of the losses they incurred during recent market-making activities.

Kyber Director warned that law enforcement involvement would void this entire proposal, providing no path to recover value for existing KNC token holders.

With less than 3 weeks to decide on complying or refusing the takeover bid, the KyberSwap team faces a perilous fork in the road, one that may determine the protocol’s very existence.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.