KyberSwap Plans Compensation for Hack Victims
The decentralized exchange KyberSwap has announced its plans to compensate victims of a $54.7 million exploit. The exchange’s parent company, Kyber Network, will use the protocol’s treasury to grant each victim an amount equivalent to the USD value of their stolen assets at the time of the hack. Despite the decentralized nature of KyberSwap and its acknowledgement that users are responsible for the risks involved, the management has decided to show solidarity with affected users. The details of the proposed grants are still being finalized and will be released in the next two weeks. Additionally, Kyber Network is working with law enforcement and cybersecurity firms to recover the stolen funds and locate the hacker.
KyberSwap Falls Victim to Multi-Million Dollar Hack
KyberSwap recently experienced a hack in which a meticulous exploiter manipulated the platform’s liquidity and drained user funds totaling tens of millions. The assets were stolen from multiple chains that host the decentralized exchange, including Base, Polygon, and Arbitrum. Following confirmation of the attack, Kyber Network advised users to withdraw their remaining assets while an investigation takes place. According to DefiLlama data, KyberSwap’s total value locked (TVL) has decreased by 98.28% in the past week and is now valued at $7.2 million.
Hacker Makes Bold Demands as Deadline Approaches
The deadline for KyberSwap’s management to respond to the hacker’s demands is approaching. The hacker sent an on-chain message listing audacious demands after initially being offered a 10% bounty fee by Kyber Network. The demands include full control over Kyber, temporary ownership of KyberDAO, access to all files and information relating to Kyber, ownership of all assets belonging to the company, and a buyout of all executives at a fair price. The Kyber Network has yet to respond to these demands but remains committed to tracking down the hacker.
Hot Take: KyberSwap Takes Action to Support Users Amidst Hack
KyberSwap’s decision to compensate victims of the hack demonstrates its commitment to supporting its users during this challenging time. Despite the decentralized nature of the exchange, the management has chosen to use the protocol’s treasury to grant each victim an amount equivalent to their stolen assets. This gesture of solidarity will help alleviate some of the financial losses experienced by affected users. Additionally, Kyber Network’s collaboration with law enforcement and cybersecurity firms shows its dedication to recovering the stolen funds and bringing the hacker to justice. By taking these proactive steps, KyberSwap is sending a strong message that it prioritizes the security and well-being of its users.
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