{"id":65311,"date":"2023-11-23T06:15:34","date_gmt":"2023-11-23T10:15:34","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=65311"},"modified":"2023-11-23T06:15:38","modified_gmt":"2023-11-23T10:15:38","slug":"kyberswap-hacked-for-46m-users-advised-to-withdraw-funds","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/kyberswap-hacked-for-46m-users-advised-to-withdraw-funds\/","title":{"rendered":"KyberSwap Hacked for $46M, Users Advised to Withdraw Funds"},"content":{"rendered":"\n

KyberSwap, a decentralized exchange,<\/a> has suffered a major security breach, resulting in the loss of around $46 million in various cryptocurrencies. The attack targeted the KyberSwap Elastic protocol, which offers speed, efficiency, and top-tier governance.<\/p>\n\n\n\n

\"KyberSwap<\/figure>\n\n\n\n

KyberSwap, which operates on the Kyber Network, has been hit by a massive exploit that drained about $46 million worth<\/strong> of crypto assets from its platform. <\/p>\n\n\n\n

The hack, which occurred on X, affected the KyberSwap Elastic protocol, a cross-chain token swap service that enables users to exchange tokens between Ethereum, Arbitrum, Optimism, and other blockchains.

According to KyberSwap\u2019s official announcement,\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> the exploit was caused by a vulnerability in the KyberSwap Elastic smart contract, which allowed the attacker to manipulate the price of the tokens and withdraw them from the liquidity pools. <\/p>\n\n\n\n

KyberSwap said that it had paused the KyberSwap Elastic protocol and notified all the affected liquidity providers. The platform also urged all users to withdraw their funds from KyberSwap as a precautionary measure.<\/p>\n\n\n\n

The attacker, who used multiple addresses to carry out the hack, reportedly left some on-chain messages on the Ethereum blockchain, suggesting that they were willing to negotiate with the KyberSwap team, employees, DAO members, and liquidity providers. <\/p>\n\n\n\n

\"KyberSwap
Kyberswap exploiter reaches out with a message: Dear Kyberswap Developers, Employees, DAO members and LPS, Negotiations will start in a few hours when I am fully rested. Thank you.<\/em><\/figcaption><\/figure>\n\n\n\n

The messages also claimed that the attacker did not intend to harm the platform or the users but only wanted to expose the security flaw.

The exploit had a significant impact on the platform\u2019s total value locked (TVL), which is a measure of the amount of crypto assets locked in a DeFi protocol. <\/p>\n\n\n\n

According to DeFiLlama,<\/use><\/svg><\/span><\/a> a website that tracks DeFi data, KyberSwap\u2019s TVL dropped by nearly 70%<\/strong> within hours of the hack, from $84.9 million to $14.32 million. <\/p>\n\n\n\n

The top affected assets in the exploit were Arbitrum (ARB), Optimism (OP), Ethereum (ETH), and Base, according to DeBank.<\/use><\/svg><\/span><\/a> The attacker stole around $18.85 million<\/strong> in Arbitrum, $15.36 million <\/strong>in Optimism, and $7.44 million <\/strong>in Ethereum, among other tokens.<\/p>\n\n\n\n

The hack also had a negative effect on the price of Kyber Network Crystal (KNC), the native token of the Kyber Network, which powers KyberSwap and other DeFi applications. <\/p>\n\n\n\n

According to CoinGecko, KNC\u2019s price<\/use><\/svg><\/span><\/a> fell by 2.86% in the last 24 hours, trading at $0.72 at the time of writing. However, the token\u2019s trading volume surged by 154.39% to $58.48 million, indicating increased market activity.<\/p>\n\n\n\n

The incident at KyberSwap is the latest in a series of hacks and exploits that have plagued the DeFi space in recent months, exposing the vulnerabilities and risks of the emerging sector. <\/p>\n\n\n\n

In October, Coinscreed reported that Cream Finance,<\/a> a DeFi platform, lost $130 million in a flash loan attack. In September, pNetwork,<\/use><\/svg><\/span><\/a> a cross-chain bridge service, was hacked for $12.7 million in Bitcoin. <\/p>\n\n\n\n

These incidents have raised concerns about the security and regulation of DeFi platforms, which operate without intermediaries or centralized authorities.<\/p>\n\n\n\n

As the crypto industry faces increasing scrutiny and challenges from regulators, lawmakers, and hackers, the KyberSwap hack serves as a stark reminder of the need for more robust and reliable security measures and standards in the DeFi ecosystem. <\/p>\n\n\n\n

Meanwhile, users and investors are advised to exercise caution and due diligence when interacting with DeFi platforms and protocols.<\/p>\n","protected":false},"excerpt":{"rendered":"

KyberSwap, a decentralized exchange, has suffered a major security breach, resulting in the loss of around $46 million in various cryptocurrencies. The attack targeted the KyberSwap Elastic protocol, which offers speed, efficiency, and top-tier governance. KyberSwap, which operates on the Kyber Network, has been hit by a massive exploit that drained about $46 million worth […]<\/p>\n","protected":false},"author":44,"featured_media":65313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11476,73],"tags":[197,2156,7907],"class_list":["post-65311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hacks-and-scams","category-defi-news","tag-defi","tag-exploit","tag-kyberswap"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/11\/KyberSwap.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/65311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=65311"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/65311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/65313"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=65311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=65311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=65311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}