Kyber network has been exploited for over $47 million across various chains
Kyber Network Suffers $47 Million Exploit
Kyber Network, a decentralized finance platform, has fallen victim to an exploit resulting in losses of at least $47 million. The attack targeted KyberSwap Elastic, prompting the network to advise all users to withdraw their funds immediately.
The Attack
The attack focused on KyberSwap Elastic, an upgrade to the existing KyberDMM protocol, and affected all 15 chains of the network’s flagship product, KyberSwap. This product allows users to trade across different chains and maximize their earnings.
Industry experts believe that the exploit involved flash loans and a rounding issue, with every transaction starting with an ETH balance looped through minting, redeeming, and swapping. On-chain detectives suspect an approval issue with the Kyber aggregator, through which the hacker drained the Kyber LP pools. It appears that the hacker targeted only staked amounts in the liquidity pools, meaning that traders were not directly affected by the exploit. However, Kyber liquidity providers (LPs) are advised to withdraw their stakes immediately.
Hacker Returns with a Message
In an unexpected turn of events, the hacker responsible for the exploit has issued a message, indicating that negotiations will begin after they have rested. The nature of these negotiations is unclear, and it remains to be seen what the hacker’s intentions are.
Kyber’s Response
The team at FXStreet reached out to the Kyber Network for comments, but the company has not yet issued an official statement regarding the exploit or the hacker’s message.
Investment Disclaimer
It’s important to note that the author and FXStreet are not registered investment advisors, and the information presented in this article is not intended to serve as investment advice to readers.
Conclusion
The Kyber Network is grappling with a significant exploit that has resulted in substantial losses. With the security of decentralized finance platforms coming into question, it’s crucial for users to exercise caution when using such services. The consequences of this exploit, as well as the hacker’s intentions, remain unclear, and the broader implications for Kyber and decentralized finance as a whole are yet to be determined.
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