Bybit Initiates Controversy by Pursuing Nearly $100,000 in Refund from ParaSwap DAO Related to Hacker’s Swap Fees
Bybit has requested a refund from ParaSwap DAO for swap fees paid by a hacker, sparking a governance debate over ethical responsibility. Cryptocurrency exchange Bybit wants ParaSwap DAO to return over $90,000 in Ethereum (ETH) in swap fees tied to the $1.46 billion theft, igniting discussion in the decentralized finance community regarding a move that could set a legal precedent.
In an X post on March 4, prominent DeFi analyst Ignas, who is also a ParaSwap DAO delegate, stated that the exchange requested the return of 44.67 ETH from the ParaSwap DAO “that Bybit hacker paid in swap fees.”
“This decision has ethical and legal responsibilities against the DAO and sets a precedent for the wider DeFi ecosystem (notably Thorswap).”
Ignas
The analyst notes that Bybit is a major player in the space, adding that returning the funds could help avoid “legal headaches.” However, there’s a significant caveat, as returning the funds could establish a precedent.
“Code is law. The DAO earned the fees legitimately via smart contracts. And if funds are returned now, what about future cases? Sets a dangerous precedent. And at the end of the day, Bybit’s poor security (I know Safe UI was compromised, but still) led to the hack.”
Ignas
The analyst suggests a middle ground, leaning towards returning most of the funds “minus 10% Bybit official bounty.” Bybit’s CEO Ben Zhou earlier revealed that nearly 20% of the stolen funds are now untraceable, just less than two weeks after the exchange lost over $1.4 billion in a highly sophisticated attack by North Korea-backed hackers.
