News Report Technology
December 27, 2023

Kyber Network Laysoff 50% Workforce to Recover from $46.5M Security Breach Loss

In Brief

Kyber Network layed off 50% of workforce and suspended KyberAI and Kyber Network projects to recover from the $46.5 million security breach.

Kyber Network Reduces Workforce to Recover from $46.5 Million Loss in Security Breach

Multi-chain cryptocurrency trading and liquidity hub Kyber Network had encountered a security breach, resulting in a loss of $46.5 million in digital assets due to an exploit on its KyberSwap facility earlier this year.

The attacker stole $46.5 million in various digital assets, including 10,049 units of Wrapped Ethereum (WETH) valued at around $20.78 million, 4,017 units of Lido-wrapped staked Ethereum (wstETH) worth approximately $9.53 million, and about 3.98 million units of the Layer 2 scaling solution Arbitrum (ARB), totaling $4.1 million.

Following the security breach, Kyber Network’s chief executive officer, Victor Tran, implemented measures to protect the platform’s users and future. The platform cut its workforce by 50% and launched the KyberSwap Elastic Exploit Treasury Grant Program, aiming to cover up to 100% of user losses.

Additionally, the network has temporarily halted specific initiatives. Kyber Network, an on-chain liquidity protocol, facilitating decentralized token swaps integration into applications and enabling value exchange among ecosystem participants, was suspended. 

The KyberAI project, which offers KyberSwap users market data for trading decisions, has also been halted. The suspension of these initiatives is part of a strategic refocusing effort aimed at addressing the aftermath of the security breach.

Despite these efforts and the market’s generally stable reaction, the native token of Kyber Swap, Kyber Network Crystal (KNC), remained relatively steady, trading at around $0.72 at the time of writing, underscoring the resilient nature of the DeFi market and the confidence investors have in Kyber Network’s long-term vision.

Security Vulnerabilities in DeFi Projects Raise Concerns

In the rapidly expanding realm of decentralized finance, security vulnerabilities have become a paramount concern, with recent incidents shedding light on the risks associated with even well-established projects. 

In the recent development, the decentralized financial platform Telcoin encountered a vulnerability attack, resulting in an approximate loss of $1.3 million and a 43.25% decline in the platform’s native token TEL within a 24-hour period. The platform stated its efforts to counter the attack and promised to provide updates to users once the situation is resolved.

In the face of escalating cyber threats, Kyber Network exhibits resilience by taking decisive actions to secure its position within the digital landscape. Kyber Network strategic measures to recover from a security breach, demonstrate its commitment to addressing the aftermath and ensuring its long-term stability.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories

Big Bets: The Biggest Gambling Cryptocurrencies of 2024

by Viktoriia Palchik
April 22, 2024
Join Our Newsletter.
Latest News

Big Bets: The Biggest Gambling Cryptocurrencies of 2024

by Viktoriia Palchik
April 22, 2024

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Unibot Unveils Three Growth Initiatives, Outlines Plans For Referral System, Token Buyback, And Rewards
Markets News Report Technology
Unibot Unveils Three Growth Initiatives, Outlines Plans For Referral System, Token Buyback, And Rewards
April 22, 2024
Big Bets: The Biggest Gambling Cryptocurrencies of 2024
Digest Gambling Wiki Technology
Big Bets: The Biggest Gambling Cryptocurrencies of 2024
April 22, 2024
Galxe Community Initiates Vote On Proposal For Token Symbol Change And Contract Migration
Markets News Report Technology
Galxe Community Initiates Vote On Proposal For Token Symbol Change And Contract Migration
April 22, 2024
SatoshiVM Plans Runes Bridge Testnet Launch Next Week, Alpha Mainnet to Follow
Markets News Report Technology
SatoshiVM Plans Runes Bridge Testnet Launch Next Week, Alpha Mainnet to Follow
April 22, 2024