Daily Crypto News

KyberSwap Hack: Liquidity Pools Drained of $47 Million!

In a surprising development, KyberSwap, a crucial part of the Kyber Network, fell prey to a significant security breach today, causing a ripple effect across the cryptocurrency world. The breach, believed to be a result of a sophisticated hack, has affected key networks, including Orbitrum, Ethereum, and Polygon.

On-chain experts estimate losses at a staggering $47 million, with the malicious attack specifically targeting Kyber Swap’s Elastic pools liquidity, resulting in a considerable drain in the platform’s LP pools.

Details of the Cryptic Heist: What Really Happened?

On-chain investigator Spreek first raised the alarm on crypto Twitter, pointing out suspicious transactions. The severity of the breach becomes evident when looking at the targeted networks. The Arbitrum network faced the worst of the attack, with a theft of $20 million, followed by $15 million on Optimism, $7.5 million on Ethereum Mainnet, $2 million on Polygon, and $315,000 on Base.

Surprisingly, all the misappropriated funds can be traced back to a single address: 0xc9b826bad20872eb29f9b1d8af4befe8460b50c6. Notably, this breach wasn’t caused by a technical glitch but was a direct hit on the total value locked in Kyber pools.

Here’s Some More Information: Beginner’s Guide to Liquidity Pools: Everything You Must Know!

Kyber Network Swiftly Responds

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.

Hacker Doesn’t Back Down

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.

A Dark November for Crypto

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.

The month of November has seen a surge in cyber attacks on the cryptocurrency industry. This incident serves as a stark reminder of the need for vigilance and caution among users engaging with crypto platforms and investments. In a landscape full of innovation, security remains paramount. Stay alert, stay secure.

Also Read: Security Concerns Amidst Frequent Crypto Hackings

This incident has left many shaken. What are your thoughts on this major hack?

Read More: KyberSwap Hack: Liquidity Pools Drained of $47 Million!

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