KyberSwap, a decentralized exchange (DEX), suffered an exploit, resulting in the loss of approximately $46 million worth of funds.
KyberSwap, a decentralized exchange (DEX), suffered an exploit, resulting in the loss of approximately $46 million worth of funds. The incident, which raised concerns among users regarding the security of their funds, was reported by the Kyber Network team on November 23 on X. As a precautionary measure, users were advised to withdraw their funds while an investigation was initiated.
Blockchain analysts were able to identify the compromised wallet addresses, which remained active at the time of discovery. According to Debank, the attack led to the theft of approximately $46 million, including significant amounts of wrapped Ether (wETH), wrapped Lido-staked Ether (wstETH), and Arbitrum (ARB). The stolen funds were spread across various blockchain networks, such as Arbitrum, Optimism, Ethereum, Polygon, and Base.
The attacker left an on-chain message to the protocol developers and members of the decentralized autonomous organization (DAO), indicating “negotiations will start in a few hours when I am fully rested.”
The incident had a severe impact on KyberSwap's TVL, which experienced a sharp decline of 68% within a few hours. As a result, nearly $78 million was withdrawn from the protocol by users following the hack, a significant decrease from its peak of $134 million.
Kyber Network Crystal (KNC) tokens briefly declined by over 5% since the incident, and is currently trading at around $0.7258.
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