Decentralized exchange (DEX) KyberSwap has become the latest decentralized finance (DeFi) protocol to fall victim to the activities of hackers. According to reports on Wednesday night, the DEX was exploited across multiple chains and drained of around $50 million.
KyberSwap Hack Shocks Crypto
KyberSwap seems to have managed to evade hackers over the course of its operation even while multiple protocols fell victim to these bad actors. However, its streak of good luck seems to have come to an end after the DeFi protocol was exploited.
First reports of the hack came from crypto community members who drew the attention of the team to a possible exploit. One of these first posts was from crypto pundit OlimpioCrypto who posted on X confirming the hack from multiple sources.
By the time the first posts hit social media, the attacker had already stolen over $48 million. These were coins from various chains including Base, Polygon, and Arbitrum, among others. Users were advised to withdraw their tokens and revoke permissions to the protocol for safety.
Kyber Network Confirms Hack
Not long after the first posts were made on X, the Kyber Network team made an official post confirming the attacker. According to the announcement, the security breach occurred in the KyberSwap Elastic platform. As a result, the team advised users to withdraw their assets from the protocol to prevent further losses.
“As a precautionary measure, we strongly advise all users to promptly withdraw their funds. Our team is diligently investigating the situation, and we commit to keeping you informed with regular updates,” the KyberSwap announcement read.
Following the announcement, users have flocked to the KyberSwap platform to secure their coins. Before the attack, the protocol had over $78 million in Total Value Locked (TVL). However, this has since dropped $22 million, as data from DeFiLlama shows, and it continues to fall.
In an interesting twist, the hacker has left a message for the KyberSwap team telling them they will be open for negotiations soon. “Dear KyberSwap Developers, Employees, DAO Members and LPs, Negotiations will start in a few hours when I am fully rested.”
KYBER token crashes following exploit | Source: KYBERUSDT on Tradingview.com
Featured image from IQ.wiki, chart from Tradingview.com
