Kyber Network Exploited: Hacker Makes Off with $47 Million
The Kyber Network recently fell victim to a malicious exploit, resulting in at least $47 million in losses. The attack targeted KyberSwap Elastic, prompting the network to urge all users to withdraw their funds immediately.
Confirmation of the attack came from Kyber Network itself, as the company took to Twitter to alert users of the security incident. The affected protocol, KyberSwap Elastic, is an upgrade to the previously existing KyberDMM, now known as KyberSwap Classic.
The exploit impacted all 15 chains of Kyber’s flagship product, KyberSwap, a crosschain decentralized exchange (DEX) and aggregator designed to facilitate smart trading and maximize earnings for users.
Industry experts pointed to flash loans as the vehicle for the exploit, speculating that a rounding issue was leveraged in a series of transactions starting with an incoming ETH balance, followed by looped minting, redeeming, and swapping.
An approval issue with the Kyber aggregator is believed to have enabled the hacker to drain the liquidity pools, primarily affecting Kyber liquidity providers (LPs). Fortunately, traders using the platform for swapping were not at risk.
With the hacker targeting staked amounts in the liquidity pools, Kyber LPs are now being advised to withdraw their stakes immediately.
In a surprising twist, the hacker has since reappeared, announcing intentions to engage in negotiations after getting some rest. The return of the hacker suggests that the situation is far from over, leaving the Kyber Network and its users on high alert.
FXStreet reached out to the Kyber Network for additional comments but has not received a response at this time.
It should be noted that the information provided above is not intended as investment advice, and individuals are encouraged to exercise caution when interacting with cryptocurrency networks and platforms. The security breach at Kyber Network serves as a reminder of the ongoing risks associated with digital assets and decentralized finance.
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