Decentralized cryptocurrency exchange KyberSwap has pledged ongoing support to users and law enforcement following a devastating hack last week in which nearly $50 million was stolen. The platform said it understood many of them were in trouble and promised grants to affected users.
With respect to the KyberSwap Elastic incident that occurred on November 22, 2023 at 22:54:09 UTC, resulting in exploitative swaps by the exploiter that withdrew approximately $48.8 million in user funds from the KyberSwap Elastic Withdrawn from liquidity pools, we reiterate our unwavering…
— Kyber Network (@KyberNetwork) December 1, 2023
On November 22, an attacker exploited a vulnerability in KyberSwap's Elastic protocol to siphon $48.8 million from liquidity pools. In a tweet, the exchange reiterated its commitment to:
- Assist law enforcement in tracking down the hacker and recovering funds
- Providing users with Treasury grants to alleviate the hardship caused by losses
- Supporting users facing challenges during this difficult time
KyberSwap promises to stand by the community
KyberSwap said that as a permissionless platform, users accept inherent risks. Still, the exchange aims to stand by the community, especially those affected who may be experiencing personal financial turmoil.
While details are still pending, KyberSwap plans to provide grants from the treasury up to the dollar value lost by each user at the time of the breach. An update will come in the next two weeks.
KyberSwap said its focus is now on recovering assets and supporting those struggling with the consequences. The team hopes to limit the damage by using its resources to help victims recover. The team's tweet also follows the hacker's recent demands, including complete control of the company.
The incident follows other serious violations this year. Crypto hacks increased rapidly in November. More than $343,000,000 was reportedly stolen through various exploits. Poloniex, Heco Chain, HTX Exchange and Kronos Research were other victims of hacks in November.
Vignesh Karunanidhi
Milk Road author
Vignesh has been an experienced professional in the crypto space since 2017. He has been writing for over five years and specializes in writing and editing various types of crypto content, including news articles, long-form articles and blog posts, all focused on sharing the beauty of blockchain and crypto.
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