Key Points
Cryptocurrency exchange Bybit is seeking a refund from ParaSwap DAO. The refund is for swap fees linked to a significant theft. This request has provoked discussion within the decentralized finance community. The debate centers around the potential for setting a legal precedent.
Details of the Request
Prominent defi analyst Ignas shared the news in a post on March 4. Ignas is also a Paraswap DAO delegate. He stated that Bybit requested the return of 44.67 ETH from the ParaSwap DAO. These funds were paid in swap fees by the individual who hacked Bybit.
Ignas highlighted the ethical and legal implications of this decision. He noted that it could set a precedent for the wider DeFi ecosystem, including Thorswap. Bybit is a significant player in the space. Returning the funds could potentially avoid legal complications. However, this action could also establish a precedent.
Ignas emphasized that the DAO earned the fees legitimately through smart contracts. He questioned the implications of returning funds now for future cases. He also pointed out that Bybit’s security issues contributed to the hack.
Ignas proposed a compromise. He suggested returning most of the funds, with a deduction of 10% for Bybit’s official bounty.
Bybit’s CEO Ben Zhou previously disclosed that nearly 20% of the stolen funds are now untraceable. This comes less than two weeks after the exchange lost over $1.4 billion in a sophisticated attack. The attack was allegedly carried out by hackers supported by North Korea.