KyberSwap Faces Massive $48 Million Exploit: Users Urged to Withdraw Funds

KyberSwap, a decentralized exchange, reported a massive security breach leading to a staggering $48 million exploit from its Elastic Pools liquidity solution. The breach, first flagged by a user named Spreek on X, has sent shockwaves through the decentralized finance landscape, prompting urgent action and concern among users.

The breach involved a sudden movement of funds from KyberSwap-associated wallets into a single wallet, spreading across multiple networks. Approximately $20.7 million was siphoned off Arbitrum, $15.3 million from Optimism, $7.45 million from Ethereum, $2.8 million from Polygon, and $2 million from Base. Notably, the compromised funds were primarily in various forms of ether, encompassing wrapped tokens, liquid staking tokens, arbitrum (ARB), and various stablecoins.

Source: Debank

KyberSwap’s Elastic Pools, which allowed liquidity providers to select preferred price ranges and automatically compound yields, was the target of this exploit. In response, KyberSwap issued an urgent advisory on X, urging users to take immediate action:

To all KyberSwap Elastic Users,

Regrettably, a security incident has impacted KyberSwap Elastic. As a precaution, we strongly advise users to swiftly withdraw their funds. Our team is actively investigating and commits to providing regular updates.

We appreciate your cooperation and understanding during this challenging period.

The swift response from KyberSwap underscores the severity of the situation, emphasizing the need for users to safeguard their assets. With the investigation ongoing, the community awaits further details regarding the scope and implications of this breach.

KNC/USDT 1 hours-chart on Binance | Source: TradingView

At the time of writing, KNC token is trading at $0.75, up 5% in 24 hours.

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