KyberSwap Hacker Moves Millions In ETH, Stablecoin; DEX Provides Update On Recovered Funds

A wallet address linked to the hacker who exploited nearly $49 million from decentralized exchange (DEX) KyberSwap late last year was reportedly seen moving millions in digital assets Monday.

Blockchain analytics firm PeckShield reported the movements of KyberSwap's exploiter early Monday on X (formerly Twitter), saying the hacker bridged 798.8 Ether (ETH) worth almost $2.5 million from Arbitrum to the Ethereum network.

PeckShield later said the same exploiter transferred 826,500 worth of the Dai (DAI) stablecoin to another wallet.

A few hours after PeckShield's report, KyberSwap provided its users with an update on the timeline of redeeming recovered funds from last year's hack. "Type 1 affected users who have claimable assets which are Affected Assets under Categories 3 or 5 will be able to start claiming" recovered funds on Wednesday, 14:00 UTC (9 a.m. EST), the DEX said in a blog post.

Likewise, "Type 2 affected users who have claimable assets which are Affected Assets under Categories 3 or 5, and who have satisfactorily completed the Google Form designating an EOA (externally owned account) address," will be able to start claiming.

It is unclear if the movement of funds by KyberSwap's exploiter is related to the DEX's announcement regarding recovered funds redemption.

KyberSwap announced a "security incident" in November, urging users to "promptly withdraw" funds. Debank data initially showed that around $46 million had been exploited in the attack, including some $20 million worth of Wrapped Ether (wETH). It was later revealed that the total losses from the hack reached $48.8 million, marking one of the biggest hacks in the crypto world last year.

The attacker gave KyberSwap a particularly difficult time, even threatening to delay negotiations for the recovery of pilfered cryptocurrencies if the exchange continued threats of taking legal action.

KyberSwap then announced the establishment of a grant initiative from the KyberSwap Treasury to offer compensation for victims who suffered massive losses due to the compromise. "Our present plan is for the KyberSwap Treasury to extend a grant to each user (who lost funds in the exploit and which have not been recovered) of an amount up to the USD value of such funds at the time when such funds were drained from their respective liquidity pools," it said on X.

Earlier this month, the DEX also opened the KyberSwap Treasury grant program to select affected users who have "normal cases" but were unable to miss the Jan. 31 deadline for program registration.