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The Coin Rise 2025-03-04 19:30:34

Bybit Demands Swap Fee Refund From ParaSwap to Recoup Hacked Funds

Bybit, a prominent crypto exchange, asks the ParaSwap DAO protocol to return over $90,000 in Ethereum (ETH) that a hacker paid as swap fees. This request has caused a big debate in the decentralized finance (DeFi). Some people think ParaSwap should return the money, while others say it is not responsible for the hacker’s actions. If the DAO agrees, it could set a legal precedent that may change how DeFi platforms handle stolen funds. A Tough Choice for ParaSwap DAO Bybit believes that since the money came from a hacker, it should be returned. The stolen funds were part of the $1.46 billion theft linked to Lazarus Group , the allegedly North Korea-backed hackers. However, the matter is complicated. ParaSwap DAO earned the fees through smart contracts, which means the transactions were technically legitimate. If the protocol agrees to return the funds, it could set a risky precedent. Other exchanges might start demanding refunds in similar cases, raising concerns about how DAOs handle such situations in the future. Some in the DeFi community argue that “code is law.” This means transactions executed on-chain should remain final, even if they involve stolen funds. Can Bybit And PanSwap Meet In A Middle Ground? Some people think ParaSwap DAO should not return all the money. Instead, they suggest keeping 10% and giving back the rest as a goodwill gesture. This could help Bybit regain some of its lost funds while protecting DAOs from being forced to return swap fees in future hacks. In a statement, Bybit’s CEO, Ben Zhou, said most of the stolen money is nearly untraceable . This came after the Federal Bureau of Investigation (FBI) reported that the attackers sent the funds to many blockchain addresses, making it hard to track and recover. This was one of the biggest crypto hacks ever, and Bybit is still struggling to recover its losses. All Eyes on ParaSwap ParaSwap’s decision could have long-lasting effects on the DeFi sector. If it returns the crypto fees, more people might ask for refunds in the future. It shows that smart contract transactions cannot be changed if they refuse. This debate shows how hard it is to balance security, fairness, and decentralization in crypto. The post Bybit Demands Swap Fee Refund From ParaSwap to Recoup Hacked Funds appeared first on TheCoinrise.com .

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