- A security incident is rumoured to have cost the project around $47 million.
- The situation is in a developing critical phase
- Kyber Network will be refunding users.
- This is a big blow for the project that announced a collaboration with Metamask only 2 days ago
KyberSwap Elastic Users Advised to Withdraw Amidst Security Incident
Kyber Network, a prominent decentralized exchange, has issued an urgent notification to its KyberSwap Elastic users regarding a significant security breach. The exchange has advised all users to withdraw their funds as a precautionary measure.
Details of the Incident
- Security Breach at KyberSwap Elastic: Kyber Network reported that KyberSwap Elastic, a part of its exchange ecosystem, experienced a security incident. The specifics of the breach, including how it occurred and the vulnerabilities exploited, are currently under investigation.
- Immediate Response: In response to this incident, Kyber Network is urging all users of KyberSwap Elastic to promptly withdraw their funds to safeguard their assets. This measure is a part of the network’s immediate action plan to prevent further potential losses.
Sorry to hear this team.
— Patrick Collins (@PatrickAlphaC) November 23, 2023
Thank you for the preemptive alert while the issue is triaged.
Looking forward to the post-mortem so we can learn to protect against whatever happened.
The Extent of the Hack
- Richard Heart’s Warning: Notable cryptocurrency figure Richard Heart highlighted the severity of the situation via a tweet, indicating that the hack is occurring across multiple chains. He estimated the loss at approximately $47 million and recommended users revoke any permissions and remove liquidity to mitigate risks.
#Kyberswap is being hacked across multiple chains currently. $47M lost so far. Consider revoking any permissions and removing any liquidity. News is 25 minutes old.
— Richard Heart (@RichardHeartWin) November 22, 2023
KyberSwap’s Aggregator Remains Unaffected
- Operational Aggregator Service: Despite the breach impacting KyberSwap Elastic, Kyber Network has confirmed that its aggregator service remains unaffected and is fully operational. This distinction is crucial for users of the aggregator service who might be concerned about the security of their assets.
Compensation for Affected Users
- Commitment to User Compensation: Sources close to the project have announced their intention to compensate all users affected by the hack. This decision reflects the platform’s commitment to its user base and its responsibility to address the consequences of the security breach.
A few hours ago, there was news about Kyber Network being hacked, with assets totaling over $45M affected. However, it's important to note that this was a protocol-level hack, not a breach of assets held in wallets.
— CPC Capital (@CPC_Capital) November 23, 2023
At the same time, #Upbit also took action to accumulate assets. pic.twitter.com/iPyms0bAq0
Ongoing Investigation and Updates
- Diligent Investigation: The Kyber Network team is actively investigating the incident to understand the breach’s nature and scope. They have committed to keeping their users informed with regular updates as the situation evolves.
- Community Support: The network has expressed gratitude for the understanding and cooperation of its users during this challenging time. Maintaining open communication and transparency is a priority for Kyber Network as they navigate through the aftermath of the incident.
KyberSwap was recently exploited… 🧵
— Felix Thomas (@FelixThomasNFT) November 23, 2023
What happened?
How can you withdrawal all assets and revoke all approvals?
How can you be eligibility for $KYB user compensation refund?
All you need to know about the hack and redistribution below 👇 pic.twitter.com/L3AC4hxEuZ
Recent Collaboration with MetaMask
In a significant development for the decentralized finance (DeFi) community, MetaMask, a leading cryptocurrency wallet and gateway to blockchain apps, announced its collaboration with Kyber Network on November 21, 2023. This partnership marks the integration of the KyberSwap DEX Aggregator into MetaMask’s swaps offering, expanding the range of options available to users for token exchanges. MetaMask users can now seamlessly access KyberSwap’s services directly through the MetaMask browser extension, mobile application, and the MetaMask Portfolio.
This integration simplifies the process for users, enabling them to effortlessly find the best rates across multiple decentralized exchanges, thereby enhancing the overall user experience in the DeFi space. This collaboration is a testament to the ongoing efforts to make DeFi more accessible and user-friendly, bridging the gap between complex blockchain technology and everyday crypto users.
The security breach at KyberSwap Elastic is a sobering reminder of the risks inherent in the cryptocurrency space. Kyber Network’s prompt response and commitment to transparency and user compensation are commendable steps towards addressing this incident. As the situation develops, the crypto community will be closely watching how Kyber Network manages the aftermath of this security breach and the measures it implements to prevent future incidents.
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- Writing about markets and decentralized finance since 2018.
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