Kyber Swap Liquidity Pools Drained, Hackers Loot Over $47 Million. – Coinpedia Fintech News

Kyber Swap Liquidity Pools Drained, Hackers Loot Over $47 Million. – Coinpedia Fintech News

November 23, 2023

Kyber Swap, a key product of the Kyber Network, faced a significant security incident today, impacting several networks, including Orbitrum, Ethereum, and Polygon. On-chain experts suggest a possible hack, with losses estimated at around $47 million. The attack targeted the Elastic pools liquidity, substantially draining Kyber Swap’s LP pools.

Alert and Transaction Analysis

On-chain investigator Spreek brought attention to the suspicious transactions on crypto Twitter. The most significant theft occurred on the Arbitrum network, with $20 million stolen, followed by $15 million on Optimism, $7.5 million on Ethereum Mainnet, $2 million on Polygon, and $315,000 on Base. All funds have been traced to a single address: 0xc9b826bad20872eb29f9b1d8af4befe8460b50c6. Notably, this hack wasn’t caused by an approval-related issue but was a direct hit on the total value locked in Kyber pools.

Kyber Network’s Response

The Kyber Network has issued an urgent notice confirming the exploit. They’ve advised users to withdraw their funds from the exchange to prevent further loss. The team also cautioned against phishing links and unsolicited direct messages. KyberSwap’s aggregator remains unaffected and is fully operational.

A Taunting Message from the Hacker

In a bizarre turn, the hacker left an on-chain message for KyberSwap’s developers, employees, DAO members, and LPs, suggesting negotiations would begin after a rest. The letter ended with a taunting inquiry about the weather in Ontario.

Impact on Kyber Network and Market Reaction

Following the attack, the Kyber network’s decentralized exchange shows a total value locked of $17.85 million, a significant drop from around $80 million pre-attack, according to DeFiLlama. The network’s token price also fell from $0.8 to $0.7.

November has witnessed a surge in cyber attacks on the crypto industry. This incident underscores the importance of vigilance and caution for users engaging with crypto platforms and investments.

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