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<h4><strong> KyberSwap DEX hit by $46 million attack, exploiting ‘infinite money glitch’ in sophisticated, multi-step crypto heist.</strong></h4> 
<h2 style="text-align: center;" id="strong-the-shocking-revelation-kyberswap-attacked-strong"><strong>The Shocking Revelation: KyberSwap Attacked</strong></h2> 
<p>In a startling development in the world of decentralized finance (DeFi), the KyberSwap decentralized exchange (DEX) experienced a <a href="https://www.coindesk.com/tech/2023/11/23/kyberswap-dex-hacked-for-48-million-attacker-teases-negotiations/">massive security breach</a>. In the recent attack on KyberSwap, a hacker siphoned off nearly $50 million in cryptocurrencies, mainly Ether and USDC. This exploit significantly affected the exchange’s operations, prompting administrators to advise users to withdraw all funds as a precaution​​.</p> 
<h2 style="text-align: center;" id="strong-kyberswap-s-liquidity-takes-a-hit-strong"><strong>KyberSwap’s Liquidity Takes a Hit</strong></h2> 
<p>As news of the attack broke, KyberSwap’s total value locked (TVL) plummeted by 68%, a staggering drop from its peak of $134 million earlier in the year. This decline reflects the immediate impact of the attack, compounded by user withdrawals. Additionally, the Kyber Network Crystal (KNC) token saw a brief 7% dip in price, though it has since stabilized​.</p> 
<h2 style="text-align: center;" id="strong-unraveling-the-infinite-money-glitch-strong"><strong>Unraveling the “Infinite Money Glitch”</strong></h2> 
<p>The attack on KyberSwap was not just a random hack but a complex, carefully engineered exploit of the platform’s concentrated liquidity feature. The attacker manipulated the smart contracts to create an “infinite money glitch,” deceiving the protocol into overpaying on trades. This manipulation resulted in the extraction of over $46 million across multiple pools​.</p> 
<p>&nbsp;</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">1/ Finished a preliminary deep dive into the Kyber exploit, and think I now have a pretty good understanding of what happened.</p> 
 <p>This is easily the most complex and carefully engineered smart contract exploit I’ve ever seen…</p> 
 <p>— Doug Colkitt (@0xdoug) <a href="https://twitter.com/0xdoug/status/1727613541115429314?ref_src=twsrc%5Etfw">November 23, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="strong-the-multi-step-heist-strategy-strong"><strong>The Multi-Step Heist Strategy</strong></h2> 
<p>The assailant employed a multi-step approach using flash loans – a form of uncollateralized loan used in DeFi – to manipulate pricing and liquidity. By fine-tuning swap amounts with incredible precision, the attacker was able to bypass key checks, leading to the double counting of liquidity in the pools. This meticulous planning and execution underline the sophistication of the attack​​.</p> 
<h2 style="text-align: center;" id="strong-the-ingenious-exploit-method-strong"><strong>The Ingenious Exploit Method</strong></h2> 
<p>To carry out the heist, the attacker initiated a series of swaps against individual pools. The strategy involved manipulating the price of assets within these pools and then exploiting the discrepancies in liquidity calculations. This technique allowed the attacker to withdraw significantly more funds than deposited, effectively draining the pools of their assets​​.</p> 
<h2 style="text-align: center;" id="strong-the-potential-preventive-measures-strong"><strong>The Potential Preventive Measures</strong></h2> 
<p>Experts analyzing the attack noted that an additional check on whether swap steps remain within expected boundaries could have prevented this exploit. The simplicity of implementing such a fix to the smart contracts highlights a critical oversight in the protocol’s security design​​</p> 
<h2 style="text-align: center;" id="strong-conclusion-strong"><strong>Conclusion</strong></h2> 
<p>This incident serves as a wake-up call for the DeFi community. The precision and complexity of the KyberSwap attack highlight the <a href="https://walletinvestor.com/magazinadmin/web3-platforms-could-improve-user-experience-with-insurance-from-security-breaches/">need for more robust security measures</a> and constant vigilance in the ever-evolving world of decentralized finance. As the sector continues to grow, ensuring the safety of user funds remains paramount.</p> 
<p>&nbsp;</p>

KyberSwap DEX Attack: Unraveling the $46 Million ‘Infinite Money Glitch’ Exploit

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