Decentralized Finance Platform Kyberswap Cuts Workforce by 50%
Victor Tran, the CEO of Kyberswap, announced on Christmas Day that the decentralized finance platform has laid off 50% of its employees. Tran attributed the decision to the recent security breach in November, where Kyberswap lost over $50 million to a cybercriminal. Initially, the company claimed that the incident did not affect its decentralized exchange aggregator.
Implications of the Security Breach
After the breach, Kyberswap engaged with the hackers who proposed buying the platform and offered a severance package to employees who resigned. However, the company did not entertain these demands. In response to the incident, Kyberswap launched the Kyberswap elastic exploit treasury grant program to cover up to 100% of users’ losses. The CEO did not explicitly state whether the job cuts were related to the hackers’ demands.
Changes in Operations and Support for Laid-off Workers
Tran mentioned that Kyberswap has made significant operational changes and temporarily paused some initiatives to ensure a sustainable path forward. The platform is also creating a voluntary database to help laid-off workers secure new roles in the Web3 space. Tran urged other Web3 founders to consider hiring the affected employees.
Hot Take: Kyberswap Faces Workforce Reduction Due to Security Breach and Focuses on Recovery
The decentralized finance aggregator, Kyberswap, has experienced a significant setback after losing over $50 million in a security breach. As a result, the company has laid off half of its employees, a move that can be attributed to the aftermath of the breach. However, Kyberswap is taking steps to support its affected users and ensure a sustainable future. By implementing the Kyberswap elastic exploit treasury grant program, they aim to cover users’ losses. Additionally, the platform is focusing on operational changes and has temporarily paused certain projects. Furthermore, Kyberswap is creating a database to help the laid-off employees find new opportunities within the Web3 sector, showing its commitment to both its users and its workforce.
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