KyberSwap DEX $46 million mined, TVL tanks 68%
It appears that nearly $46 million in various crypto assets has come out of decentralized exchange KyberSwap in a recent decentralized finance exploit.
In the year On November 23, the Cyber Networks team warned users in a post on X (Twitter) that CyberSwap Rubber had “experienced a security vulnerability”.
It advised users to be cautious with their withdrawals and added that it is investigating the situation.
Urgent
Dear KyberSwap Elastic users, We regret to inform you that KyberSwap Elastic has experienced a security issue.
As a precautionary measure, we strongly advise all users to withdraw their funds promptly. Our team is diligently investigating the situation, and we…
— Kyber Network (@KyberNetwork) November 22, 2023
Blockchain sleuths have highlighted the victimization and exploitation of wallet addresses that were still active recently.
According to DeBank data, $46 million was stolen in the attack, including about $20 million in Stacked Ether (weTH), $7 million in Stacked Lido-staked Ether (wstETH), and $4 million in Arbitrum (ARB).
The funds are distributed across multiple chains including Arbitrum, Optimism, Ethereum, Polygon and Base.
Several sources have reported that Kyberswap is leaking.
If you have assets, remove pic.twitter.com/Y5ooYYzcTd
— Olimpio (@OlimpioCrypto) November 22, 2023
According to blockchain sleuth “Spreek” on XPost, “this is not an approval related issue and only related to the TVL that took place in cyber pools.”
The attacker left a chain message to the protocol developers and DAO members saying, “After a few hours I'm fully rested, negotiations will begin.”
Related: KyberSwap Announces Vulnerability, Tells LPs to Remove ASAP
According to Defillama's data, KyberSwap's total value locked (TVL) tanked at 68% in a few hours, with nearly $78 million leaving the protocol due to the hack and user termination. His TVL currently sits at $27 million, with a 2023 cap hit of $134 million.
As news of the exploit broke, Kyber Network's Crystal KNC token price briefly dropped 7% but recovered to trade at $0.74.
The group identified the vulnerability in April, advising users to withdraw liquidity. However, no money was lost in that event.
Magazine: Should crypto projects negotiate with hackers? in case
