Markets News Report
November 24, 2023

KyberSwap Responds to $47 Million Hack, Proposes 10% Bounty to Retrieve Funds

KyberSwap Responds to $47 Million Hack, Proposes 10% Bounty to Retrieve Funds

KyberSwap, a leading multi-chain DEX aggregator, experienced a severe security breach on November 23, 2023, due to a smart contract reentrancy attack.

The attack resulted in a staggering loss of approximately $47 million across multiple networks. Following the breach, the platform’s Total Value Locked (TVL) plummeted by 90%, illustrating the grave implications of smart contract vulnerabilities.

The vulnerability that facilitated the attack was likely in the mint function of KyberSwap’s new v2 reinvestment token (KS2-RT).

This function contained a mint callback, which appears to have opened a gateway for reentrancy attacks. Reentrancy attacks are a common yet critical vulnerability in smart contract design.

Source: etherscan.io

Kyber Network Immediate Response and Advisory

In response to the breach, Kyber Network promptly advised users to withdraw their funds as a precaution. The team is thoroughly investigating the incident to gauge its full extent and to strengthen security measures, thereby preventing future vulnerabilities.

This incident sheds light on the imperative need for stringent security protocols in DeFi platforms, especially in smart contract management.

Key takeaways include the necessity of thorough auditing and real-time monitoring of network activities. Additionally, adherence to best practices in development is crucial to mitigate similar risks in the future.

The KyberSwap attack is a stark reminder of the persistent threats in the DeFi ecosystem. It calls for a security-first approach from all stakeholders, emphasizing the need for continuous enhancement of defensive measures against sophisticated cyber threats. Such a proactive approach is vital for sustaining trust and stability in decentralized finance.

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

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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