KyberSwap Vows Compensation After $48.8M Breach
KyberSwap made an announcement on December 1st outlining their initiative to aid users affected by a recent security breach.
This breach led to the draining of $48.8 million from the platform’s elastic liquidity pools, which are designed to enable users to stake their cryptocurrency for interest or yield.
The platform proposed a plan to compensate affected users by using funds from the KyberSwap Treasury. They intend to grant these users an amount equivalent to the USD value of their lost funds at the time of the breach. Details regarding this compensation plan are expected to be released within the next fortnight.
In response to the breach, KyberSwap assured its cooperation with law enforcement and cybersecurity agencies in tracing the attacker and recovering the stolen funds. The platform emphasized its decentralized nature, indicating that users acknowledge associated risks as per the terms of service.
The breach occurred in late November, prompting KyberSwap to advise users to withdraw their funds immediately. Following the breach, the hacker sought control of the platform, although KyberSwap has not disclosed whether negotiations or incentives for fund return are being considered.
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KyberSwap, an aggregator for decentralized exchanges supporting multiple blockchains, had a total value locked of $7.17 million as of December 1st, according to data from DefiLlama.
Prior to this incident, KyberSwap had faced security issues in the past, notably experiencing a front-end hack in September 2022 that resulted in a loss of $265,000. Concerns regarding the platform’s liquidity pools were also highlighted back in April.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
