Kyberswap, a decentralized exchange operating within the Kyber Network, fell victim to a substantial security breach on November 23. The aftermath saw the loss of around $46 million in various crypto assets, impacting multiple networks, including Orbitrum, Ethereum, and Polygon.
🚨Urgent🚨
Dear KyberSwap Elastic Users,
We regret to inform you that KyberSwap Elastic has experienced a security incident.As a precautionary measure, we strongly advise all users to promptly withdraw their funds. Our team is diligently investigating the situation, and we…
— Kyber Network (@KyberNetwork) November 22, 2023
Blockchain investigators, particularly those at spreek, shed light on the series of thefts, revealing a $20 million loss on Arbitrum, succeeded by $15 million on Optimism, $7.5 million on the Ethereum mainnet, $2 million on Polygon, and $315,000 on Base. Notably, the entirety of the pilfered funds could be traced back to a single address: 0xc9b826bad20872eb29f9b1d8af4befe8460b50c6.
In the wake of the security exploit, Kyberswap’s Elastic protocol suffered a severe blow, with its Total Value Locked (TVL) witnessing a staggering 70% drop within a mere 24 hours, as reported by Defillama. Of course, the TVL, which once stood impressively at over $80 million, plummeted to a precarious low of around $8 million shortly after the security breach announcement.
$KNC Price Action
Futhermore, the repercussions extended to Kyber Network’s native token, Crystal KNC, experiencing a 7% decline from $0.76 to $0.70. Although, while there has been a slight recovery, the token is currently trading around the $0.72.
Progressively, in a response to the security incident, Kyberswap promptly issued an advisory. This involves urging users to withdraw their funds as a precautionary measure. Also, the platform expressed regret for the security breach and assured users that their team is actively investigating the situation. Then, committing to providing regular updates to keep the community informed.
Of course, this unfortunate event serves as a reminder of the vulnerability of decentralized exchanges to security threats. Also, it underscores the critical need for robust protective measures and constant vigilance within the crypto space.
Conclusion
Finally, Kyberswap is currently grappling with a major setback due to a significant security breach, leaving the crypto community in a state of concern.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: Max Bender/Unsplash // Image Effects by Colorcinch
