Bybit Requests Refund from ParaSwap DAO

Bybit has requested a refund from ParaSwap DAO for hack-related swap fees, igniting a governance debate regarding ethical responsibilities.

Cryptocurrency exchange Bybit is seeking the return of over $90,000 in Ethereum (ETH) concerning swap fees associated with a $1.46 billion theft. This request has sparked discussions within the decentralized finance community about potential legal precedents.

> Bybit asked to return 44.67 ETH from the ParaSwap DAO that a hacker paid in swap fees.
> Date: March 4, 2025
> Source: Ignas | DeFi (@DefiIgnas)
> Context: Bybit’s request involves ethical and legal considerations that could impact the wider DeFi ecosystem, including Thorswap.

Prominent DeFi analyst Ignas, a delegate of the ParaSwap DAO, commented on the situation, pointing out the implications of returning the funds and the responsibilities of the DAO:

> “This decision has ethical and legal responsibilities against the DAO and sets a precedent for the wider DeFi ecosystem.”
>
> Ignas further elaborated on the risks of setting a dangerous precedent, asserting that although the funds were earned legitimately through smart contracts, Bybit’s security issues contributed to the hack:
>
> “Code is law. The DAO earned the fees legitimately via smart contracts. And if funds are returned now, what about future cases?”
>
> Ignas proposes a middle ground, suggesting a partial return of funds minus a 10% bounty for Bybit.

Bybit’s CEO Ben Zhou previously disclosed that nearly 20% of the stolen assets have become untraceable in the aftermath of a sophisticated attack attributed to North Korean hackers, which resulted in a loss exceeding $1.4 billion.

Read more: Safe Wallet responds to Bybit hack with significant security enhancements.