Arbitrum

Million

Kyber Network Crystal v2

Crystal

Security

In a startling development, the <a href="https://coingape.com/glossary/decentralized-exchange/" target="_blank" rel="noopener noreferrer nofollow">decentralized exchange</a>, KyberSwap has fallen victim to a significant exploit, resulting in the loss of approximately $46 million in various cryptocurrencies. According to the update given by KyberSwap on X, the attack targeted KyberSwap Elastic, prompting urgent advisories for users to withdraw funds.&nbsp;
Meanwhile, the incident raises questions about the vulnerabilities in decentralized finance platforms.
<h2 id="span-data-preserver-spaces-true-kyberswap-security-breach-span">KyberSwap Security Breach</h2>
Kyber Network’s renowned decentralized exchange, KyberSwap, encountered a major security breach as approximately $46 million in crypto assets were drained. The exploit, which affected the KyberSwap Elastic protocol, triggered a rapid decline in the platform’s total value locked (TVL), plummeting by around 70% within hours, DeFiLlama <a rel="noopener noreferrer nofollow" href="https://defillama.com/protocol/kyberswap" target="_blank">data</a> showed. According to the latest data, the platform’s TVL fell from $84.9 million to $14.32 million within a few hours following the news.
KyberSwap users were promptly notified to withdraw their funds as a precautionary measure. Meanwhile, blockchain analysts revealed that the attacker left on-chain messages, hinting at negotiations with protocol developers, employees, DAO members, and liquidity providers.
According to DeBank <a rel="noopener noreferrer nofollow" href="https://debank.com/profile/0xc9b826bad20872eb29f9b1d8af4befe8460b50c6" target="_blank">data</a>, the top affected assets in the exploit are Arbitrum (ARB), Optimism (OP), Ethereum (ETH), and Base. A close look at the report suggests that around $18.85 million were lost in Arbitrum, followed by $15.36 million in Optimism, and $7.44 in Ethereum.
Also Read: <a href="https://coingape.com/crypto-prices-today-market-rebounds-with-btc-pepe-coin-ftt-rallying/" target="_blank" rel="noopener noreferrer nofollow">Crypto Market Rebounds With BTC, Pepe Coin, FTT Rallying</a>
<h2 id="span-data-preserver-spaces-true-crypto-community-reacts-span">Crypto Community Reacts</h2>
The exploit’s repercussions extended beyond KyberSwap, impacting the broader crypto community. Kyber Network Crystal (KNC) token prices experienced a brief dip, reflecting the market’s sensitivity to such incidents. The incident adds a layer of complexity to the ongoing regulatory scrutiny faced by major crypto exchanges.
Notably, as of writing, the Kyber Network Crystal v2 lost 2.86% over the last 24 hours and traded at $0.72, while its trading volume from yesterday rocketed 154.39% to $58.48 million. The crypto has touched a low of $0.7202 in the last 24 hours.
As the crypto landscape navigates security challenges, regulatory demands, and transformative leadership changes, the incident at KyberSwap serves as a stark reminder of the evolving risks within the <a href="https://coingape.com/glossary/defi-decentralized-finance/" target="_blank" rel="noopener noreferrer nofollow">decentralized finance (DeFi)</a> space. Meanwhile, investors and industry participants are urged to remain vigilant in the face of potential vulnerabilities in the DeFi ecosystem.
Also Read: <a href="https://coingape.com/ethereum-eth-price-back-above-2000-amid-whale-accumulation/" target="_blank" rel="noopener noreferrer nofollow">Ethereum (ETH) Price Back Above $2,000 Amid Whale Accumulation</a>
The post <a rel="noopener noreferrer nofollow" href="https://coingape.com/kyberswap-faces-46-million-crypto-hack-triggering-concerns-in-defi-space/">KyberSwap Faces $46 Million Crypto Hack Triggering Concerns In DeFi Space</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coingape.com">CoinGape</a>.

KyberSwap Faces $46 Million Crypto Hack Triggering Concerns In DeFi Space

Table of Contents

Coingape News Media

Other articles published on Nov 23, 2023

GBTC discount drops below 10% as SEC met with Grayscale

Justin Sun-related crypto platforms hacked 4 times in 2 months

Binance's CEO Resigns After $4.3 Billion Settlement with DOJ

Genesis’ Lawsuit Against Gemini Over $689M Crypto Lending Dispute

Jim Cramer’s Bold Statement: “If You Like Bitcoin, Buy Bitcoin!”

Divi (DIVI) Price Prediction 2024, 2025, 2030, 2040, and 2050

Join our free newsletter for daily crypto updates!