Bybit Wants Hack Fees Back, ParaSwap DAO Hesitates

Crypto News Exchanges

Written by Aaron S.,

Editor-In-Chief

Last Updated: March 06, 2025

Key Takeaways

Bybit asked ParaSwap’s DAO to return nearly $100,000 in fees from hacked transactions;
Ignas warned that refunding the funds could set a risky precedent for future cases;
ParaSwap’s DAO remains divided on whether to return, keep, or partially refund the fees.

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Bybit Wants Hack Fees Back, ParaSwap DAO Hesitates

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A debate has emerged within the ParaSwap PSP $0.0146 decentralized autonomous organization (DAO) after cryptocurrency exchange Bybit $1.6B requested the return of fees linked to a hack.

The request, posted on ParaSwap’s forum on March 4, asks for the return of 44.67 Wrapped Ethereum WETH $3,053.68 , worth nearly $100,000, which was collected as fees from transactions involving stolen assets.

Ignas, a DeFi researcher and ParaSwap DAO delegate, weighed in, pointing out the dilemma the DAO faces. He noted that keeping the funds could lead to regulatory scrutiny and a negative perception of the protocol.

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He wrote, "Code is the law. The DAO earned the fees legitimately via smart contracts. And if funds are returned now, what about future cases? Sets a dangerous precedent".

The ParaSwap DAO is considering multiple options. Some members support returning the full amount, while others propose keeping a portion as a bounty, similar to Bybit’s bug bounty program. Another member opposes any refund, arguing that the DAO has no obligation to return funds earned through its normal operations.

Initially, the proposal faced skepticism from DAO members, who demanded verification before considering any action. Bybit later confirmed its involvement in a March 5 post on X, stating it was behind the request to recover the funds.

Meanwhile, Bybit CEO Ben Zhou recently denied requesting a listing for Pi Network. Why? Read the full story.