Bounty

Multichain

Security

<div class="cryptonews">
 <p class="is-style-lead">The Kyber Network team has confirmed the incident, urging users to promptly withdraw their funds.</p>
 <p>Decentralized exchange protocol KyberSwap has allegedly suffered a hacker attack as more than $45 million worth of crypto has been drained from the project across multiple networks.</p>
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    <p lang="en" dir="ltr">Urgent<br><br>Dear KyberSwap Elastic Users,<br>We regret to inform you that KyberSwap Elastic has experienced a security incident. <br><br>As a precautionary measure, we strongly advise all users to promptly withdraw their funds. Our team is diligently investigating the situation, and we…</p>— Kyber Network (@KyberNetwork) November 22, 2023
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 <p>The Kyber Network team has confirmed the incident in an X post, advising users to “promptly withdraw their funds.” The team also noted that KyberSwap’s aggregator “is not impacted and is operating fully as normal.”</p>
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    <p lang="en" dir="ltr">Kyberswap appears to have suffered from an <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a> involving their liquidity pools. The issue does not appear to affect their router contract, thus it should not affect Unibot users' trades. Regardless, Unibot has disabled Kyberswap as an integrated aggregator out of an abundance…</p>— Unibot (@TeamUnibot) November 22, 2023
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 <p>While the root cause of the attack is yet to be revealed, users suggest that the protocol allegedly suffered an <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a> involving its liquidity pools. According to Unibot, a crypto trading bot for Telegram, the issue “does not appear to affect their router contract,” implying the incident should not affect Unibot users’ trades.</p>
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    <p lang="en" dir="ltr">.@KyberSwap was <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>ed due to tick manipulation and double liquidity counting.<br>In summary, the attackers borrowed a flash loan and drained the pools with low liquidity. By executing swaps and altering positions, they manipulated the current prices and ticks of the victimized… https://t.co/wNGORP4CsT pic.twitter.com/lIQYe5SHi7</p>— BlockSec (@BlockSecTeam) November 23, 2023
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  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> KyberSwap Ready to Pay a 15% Bounty if Hacker Returns $265K Stolen Crypto Funds
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 <p>Analysts at blockchain firm BlockSec claim the hack was possible due to a “tick manipulation and double liquidity counting.”</p>
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  <p>“In summary, the attackers borrowed a flash loan and drained the pools with low liquidity. By executing swaps and altering positions, they manipulated the current prices and ticks of the victimized pools.”</p>
  <p>BlockSec</p>
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 <p>Shortly after the attack, the hacker left an on-chain message, saying they will soon start negotiations with the Kyber Network team. Amid the incident, the total value of funds locked in KyberSwap plunged by almost 84% from $84.9 million down to $13.6 million, according to data from DefiLlama.</p>
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   <img decoding="async" width="1024" height="446" src="https://cdn.thebittimes.com/images/2023/11/23/f1ff4fdd5c31281bd887008622c19b55.webp" alt="KyberSwap suffers multichain exploit, resulting in $45m loss - 1"> 
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   TVL in KyberSwap following the incident | Source: DefiLlama
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 <p>Security analysts at Lookonchain calculated that the hacker stole over 10,000 in wETH (valued at the moment of the attack at $20.7 million), more than 4,000 in wstETH ($9.5 million) and nearly 4 million in ARB (~$4.1 million) among other tokens across Base, Polygon, Optimism, Arbitrum and other networks.</p>
 <p>Users believe the hacker is the same person who attacked Indexed Finance, referring to the same crypto address spotted in the transaction history of KyberSwap’s operations.</p>
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  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> KyberSwap Unveils Multichain Integration Into Their System
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/kyberswap-suffers-multichain-exploit-resulting-in-45m-loss-tbt71311.html">https://thebittimes.com/kyberswap-suffers-multichain-exploit-resulting-in-45m-loss-tbt71311.html</a></p>

KyberSwap suffers multichain exploit, resulting in $45m loss

TheBitTimes

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