Binance identifies KyberSwap hack suspects, involves law enforcement

Regulation

Helping investigate a $265,000 hack on decentralized crypto exchange KyberSwap, crypto exchange Binance narrowed down two suspects that seem responsible for the attack. 

On Sept. 1, Kyber Network succumbed to a frontend exploit, allowing the attacker to make away with $265,000 worth of user funds from KyberSwap. While investigations were underway, KyberSwap offered a 10% bounty — of roughly $40,000 — to the hacker as means to remediate the situation.

Parallelly, based on an independent investigation, Binance’s security team identified two suspects that may be responsible for orchestrating the virtual heist. Binance CEO Changpeng ‘CZ’ Zhao confirmed that the intel had been sent to the Kyber team.

Binance has also begun coordinating with law enforcement as efforts from both ends continue to corner the hackers.

Being the biggest crypto exchange in terms of trading volume, Binance’s proactive and selfless effort to help investors from other ecosystems didn’t go unnoticed, as one of the community members pointed out:

“Binance is now playing the role of a big brother in the crypto space. Binance has gone beyond securing its platform to securing the entire crypto ecosystem.”

If Binance’s investigation checks out, KyberSwap investors may be witness to a rare community-driven hack redemption.

Related: Binance froze $1M corporate account due to law enforcement request

CZ recently retaliated against rumors and false allegations that Binance was a Chinese-based “criminal entity” that “secretly [belongs] in the pocket of the Chinese government.”

While explaining his long-time ties to Chinese entrepreneurs and colleagues, he added:

“The greatest challenge that Binance faces today is that we (and every other offshore exchange) have been designated a criminal entity in China. At the same time, our opposition in the west bends over backward to paint us as a ‘Chinese company.’”

CZ confirmed that Binance has never been legally incorporated in China and never operated like a Chinese company culturally either.

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