Failed Negotiation Attempts
A few weeks ago, the Kyber Network DeFi platform experienced a hack that resulted in the theft of $46 million worth of assets. The attacker, who humorously detailed their steps, later proposed a buyout of the platform. However, this offer was rejected by Kyber Network. Despite attempts to retrieve the stolen funds, no progress has been made, and Kyber Network is now responsible for reimbursing users out of their own pockets.
Platform Development to Be Stalled
In order to provide refunds to users, Kyber Network has had to implement drastic cost-cutting measures. The CEO announced that users would be reimbursed up to 100% of their stolen funds, but did not specify where the funds would come from. In addition, development on liquidity protocol initiatives and KyberAI will be temporarily halted. Furthermore, there will be a significant reduction in workforce.
Hot Take: Kyber Network Faces Challenges After Hack
The recent hack on the Kyber Network DeFi platform has left the company in a difficult position. Despite failed negotiation attempts with the hacker and unsuccessful efforts to retrieve the stolen funds, Kyber Network is committed to reimbursing its users. To cover the costs, the company has implemented cost-cutting measures and temporarily paused certain development projects. The CEO expressed regret over the workforce reduction but hopes that former employees will find new opportunities in the crypto industry. It remains to be seen how Kyber Network will navigate these challenges and rebuild its platform.
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