KyberSwap Suffers Security Breach, Nearly $46 Million Worth of Crypto Assets Potentially Drained
Summary:
KyberSwap, a decentralized finance platform, has reportedly suffered a security breach leading to losses of around $46 million in various crypto assets. The breach was announced by the Kyber Network, advising users to withdraw their funds while investigations were carried out. The suspect left a message for DAO members and protocol developers, indicating their intention to negotiate. The breach saw a withdrawal of nearly $78 million due to the hack and user withdrawals, causing a significant drop in KyberSwap's Total Value Locked (TVL).
A suspected security breach on the KyberSwap decentralized finance platform has led to the possible loss of tokens estimated to be worth around $46 million. The team at Kyber Network shared an update alerting users of the security compromise on KyberSwap Elastic, through a social media post on November 23. As a precaution, the team implored its users to withdraw their investments and mentioned that they were probing the incident.
Specialists in blockchain forensics zoomed in on relevant wallet addresses linked to the alleged breach, noticing that some were still showing recent activity. Analysis from Debank reveals that the theft involved around $46 million, which included approximately $20 million in encased Ether (wETH), $7 million in encased Lido-staked Ether (wstETH), and $4 million in Arbitrum (ARB). These stolen assets had been distributed across several chains, including Arbitrum, Optimism, Ethereum, Polygon, and Base. Notices were sent out warning of the liquidity leak from Kyberswap.
Following the event, "Spreek", a blockchain detective, opined that the issue did not appear to stem from any approval-related anomalies, but was likely tied to the Total Value Locked (TVL) in the KyberSwap pools. A message left by the purported offender for protocol developers and DAO membership indicated plans for negotiations to commence after some rest. According to data from DefiLlama, an almost immediate fall of 68% was noticed in KyberSwap's TVL, with nearly $78 million being pulled out due to the hack and subsequent panicked withdrawals by users. Presently, the TVL sits at about $27 million, down significantly from its peak of $134 million in 2023.
Immediately after the news of the exploit broke, the value of Kyber Network's Crystal KNC token dropped by 7%, but then recovered to $0.74. Back in April, a vulnerability was spotted and users were advised to withdraw their funds. However, no financial losses were recorded then.
Published At
11/23/2023 1:39:22 AM
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