KyberSwap loses $46 million to a hack attack

KyberSwap has asked its customers to withdraw their funds as soon as possible. The post published on X, formerly Twitter, has clearly laid that out by calling it a precautionary measure. KyberSwap is conducting the investigation, and it could take a while to resolve it. As a matter of fact, the attacker has even said that they will soon begin negotiations after they have taken sufficient rest.

Crypto lost due to the hack attack is approximately worth $46 million. The platform has asked its customers not to click on phishing links or respond to any DM they have received. Currently, the platform’s aggregators remain unaffected and operate normally, providing some relief. The TVL has dropped as the attacker’s wallet continues to disperse assets, per reports that have surfaced.

While KyberSwap has called this a security incident, it is a serious hack attack that neither KyberSwap nor any other DEX can afford to ignore. It has definitely raised concerns over the security measures deployed to assure customers about their funds’ safety. Wrapped ETH, Arbtirum, and wrapped Lido-staked Ether are among the affected assets. Notable blockchains affected due to the incident are Polygon, Optimism, and Base, among others.

At a larger level, KyberSwap has witnessed a sharp decline of 68% in its TVL, followed by a withdrawal of approximately $78 million.

The impact can also be felt on KNC, which has been down by 2.49% in the last 24 hours. Its trading value was $0.7254 at the time of articulating this piece. Making things worse is the fact that this is a slip of 12.02% in the last 7 days—that is, one week. The market cap of KNC is currently down by 2.59%. 

Members of the community have demonstrated mixed reactions. Some of them have appreciated the platform for taking quick measures, while others have said that this is yet another incident in the industry. The latter is true since the number of security incidents has increased.

Binance, for example, experienced one of the biggest hacks last year to lose nearly $500 million. As a result, consumers experienced inconvenience while the issue was resolved, leading to the temporary suspension of operations by the crypto company.

HTX Exchange reportedly lost $13.6 million after witnessing a hot wallet hack. The impact of the attack affected the ecosystems of Tron, HTX, and BitTorrent. HECO Chain is an addition to the list, having lost $86.6 million. The funds were drained after being sent to suspicious addresses or stolen from them. Assets transferred were SHIB, ETH, and stablecoins, among others.

Simply put, the security incident at KyberSwap is the most recent one, but it is not the only incident that has happened. Malicious actors continue to target crypto firms and their customers to steal their holdings. KyberSwap is currently investigating the matter and is expected to publish its conclusion soon.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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