KyberSwap Offers Hacker 15% Bug Bounty Following $265,000 Exploit

KyberSwap Offers Hacker 15% Bug Bounty Following $265,000 Exploit

KyberSwap, a decentralized exchange built on the Kyber Network, has taken an unconventional approach to recover stolen funds following a recent exploit. On Thursday, the protocol revealed that a hacker had exploited a frontend vulnerability, siphoning approximately $265,000 worth of user funds from the platform.

The Exploit and Response

The Kyber Network team disclosed the incident in a blog post, outlining the details of the exploit and their response. The hacker utilized a frontend exploit to steal the funds, prompting the protocol to act swiftly to mitigate further damage.

A Unique Offer to the Hacker

In an effort to recover the stolen funds, KyberSwap extended an unusual offer to the hacker. The protocol proposed that the hacker could return the stolen funds in exchange for a bug bounty payment of 15% of the exploited amount, which equates to approximately $40,000. Additionally, KyberSwap offered the hacker "a conversation with our team," suggesting an opportunity for dialogue and potential collaboration.

Commitment to User Compensation

KyberSwap has assured its users that all losses related to the exploit will be fully compensated. This move underscores the protocol's commitment to maintaining user trust and ensuring the integrity of its platform.

A Strategic Move to Engage the Hacker

By offering the bug bounty, KyberSwap aims to incentivize the hacker to return the stolen funds while also demonstrating its proactive approach to security incidents. This strategy not only addresses the immediate financial loss but also serves as a deterrent against future exploits by engaging with potential attackers in a constructive manner.

The incident highlights the ongoing challenges decentralized exchanges face in securing user funds and the creative measures platforms are willing to take to address such vulnerabilities.