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Kyber Network Commits to 100% Compensation for Users Affected by Hack

In a recent announcement on December 2nd, Kyber Network, a decentralized finance (DeFi) project originating from Vietnam, has pledged full compensation for users affected by the hacking incident that occurred on November 23rd. The attack targeted KyberSwap Elastic, resulting in the illicit withdrawal of approximately $48.8 million from users’ funds within the KyberSwap Elastic liquidity pools.

The project has taken a firm stand to indemnify users who suffered losses due to the hack. Kyber Network plans to seek assistance from KyberSwap Treasury to support affected users, ensuring they receive the compensation they rightfully deserve.

KyberSwap issued a statement via Twitter, reiterating their resolute commitment to collaborating with law enforcement and cybersecurity agencies in tracking down the perpetrators and recovering the funds siphoned from users during the exploit.

Victor Tran, the CEO of Kyber Network, emphasized that the project bears the responsibility for the fallout, stating, “Kyber Network should be the sole entity to incur losses, while users deserve complete compensation of 100%.”

This cyberattack has sent shockwaves through the DeFi community, undermining the dedication and innovative efforts of individuals striving to contribute while adversely impacting innocent users.

Kyber Network aims to prioritize users during this distressing period, acknowledging the lingering concerns until the recovery of funds. Despite the decentralized and permissionless nature of KyberSwap Elastic, where users accept inherent risks outlined in the Terms of Use, the project intends to extend grants from the KyberSwap Treasury to ease the financial burden faced by affected users.

The proposed grant aims to reimburse each user for the USD value of their lost funds at the time of the exploit, with further details anticipated to be disclosed within the next two weeks.

Prior to this incident on November 23rd, KyberSwap, a decentralized exchange (DEX), fell victim to a hacker who siphoned approximately $47 million from the Elastic Pools. The estimated damages encompassed $20.7 million on Arbitrum, $15 million on Optimism, $7 million on Ethereum, $3 million on Polygon, and $2 million on Base, comprising assets such as ETH, WETH, stETH, ARB, and various stablecoins.

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