Cryptocurrency Platform KyberSwap Loses $54 Million in Cyberattack

On November 23, representatives of the decentralized exchange KyberSwap disclosed a cyberattack in their Elastic pool, which culminated in a hacker extracting approximately $47 million. The project’s team urgently advises users to withdraw their funds.

🚨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

The breach was detected by a user under the pseudonym Spreek, who noted a suspicious withdrawal of funds. According to his analysis, the stolen assets include $7.5 million in Ethereum, $15 million in Optimism, $16 million in Arbitrum, $2.8 million in Polygon, and $870,000 in Base.

“We’ve overcome many challenges since our 2017 inception, but by far these last 2 days have been the most difficult,” the company said.

“In response, we paused deposits, launched an investigation, contacted relevant parties & initiated negotiations with the attackers in an effort to help users recover as much as possible, including offering a 10% bounty as an incentive for returning the users’ exploited funds.”

Adam Cochran, a general partner at Cinneamhain Ventures, suspects that the hacker utilized flash loans and mathematical calculations for the breach, as each transaction began with the receipt of ETH to facilitate the swap.